If marginal costs fall below average cost, average cost must be
a. Be increasing
b. Be decreasing
c. Stay constant
d. None of the above
b
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Why is it difficult to determine whether an industry is operating efficiently when there is rapid technological process underway?
What will be an ideal response?
The demand curve facing a firm is also the firm’s
A. total utility curve. B. average revenue curve. C. average utility curve. D. total revenue curve.
Full marginal-cost pricing of water would lead to
a. More water use and higher water prices b. Less water use but no change in water prices c. Less water use and higher water prices d. Less water use and lower water prices e. More water use and lower water prices
Refer to the following figure. The price of capital is $50 per unit:
What is the minimum cost of producing 1,200 units of output?
A. $7,000 B. $8,000 C. $9,000 D. $10,000 E. $11,000