If marginal cost exceeds average variable cost,
a. average variable cost is negative
b. average variable cost is increasing
c. marginal cost is greater than average total cost
d. average variable cost is decreasing
e. average fixed cost is increasing
B
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If all prices fall by 5 percent and money income remains constant, the new budget line will have
A) a positive slope. B) the same slope. C) a steeper slope. D) a flatter slope.
The authors provide an example that illustrates the calculation of the present discounted value for the lost wages from a deceased worker, and one component in this calculation is the worker's annual mortality rate (m)
Suppose we conduct this computation in two different ways --- one calculation assumes m is constant for all future periods, and the other calculation allows m to decline over time due to improvements in medical technology. Which estimated PDV will be larger? A) The PDV with constant m will be larger B) The PDV with variable m will be larger C) The two PDV's will be equal D) The answer to this question depends on the assumed interest rate
We can calculate how long a country will take to double its real GDP per capita using:
A. its average growth rate. B. its GDP deflator. C. the CPI indexation factor. D. the GDP growth estimator.
All else equal, if the interest rate is 5%, what is the PDV of a lottery prize that pays $1,000,000 today and $1,000,000 each year for the next 19 years?
A. $10,500,000 B. $12,462,210 C. $13,085,321 D. $20,000,000