The U-shaped average total cost curve is
A) a result of firms' wanting to find the output level where cost is at its minimum.
B) unrealistic because average total cost always increases as output increases.
C) the result of average fixed cost falling and decreasing marginal returns as output increases.
D) a result of constant marginal returns.
E) a result of increasing marginal returns.
C
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In the figure above, the value on the y-axis decreases as we move from
A) point G to point A. B) point C to point A. C) point F to point A. D) point E to point A.
Refer to the accompanying table below. The average cost of 4 units of this activity is:Units of ActivityTotal CostTotal Benefit0$0$01$30$1002$40$1603$60$1904$100$2105$150$2206$210$225
A. $25 B. $30 C. $40 D. $20
?Which of the following factors did not contribute to the federal budget surpluses in the 1990s?
a. ?Higher taxes on the rich b. ?More federal government spending discipline c. ?Slower consumer spending d. ?Rising business optimism based on technological innovation e. ?Market globalization
Refer to the graphs below of D and MR for a monopolist. Which of the following statements is true?
A. A price cut from P1 to P2 would lead to a decrease in consumer spending on the product
B. A price cut from P1 to P2 would lead to an increase in consumer spending on the product
C. A price cut from P2 to P3 would lead to no change in consumer spending on the product
D. A price cut from P2 to P3 would lead to an increase in consumer spending on the product