Figure 7-11
Figure 7-11 shows an average cost curve with points on it that correspond to three quantity levels. Which of the following statements must be wrong?
a.
The firm's technology may show increasing marginal returns as production increases from A to B.
b.
The firm may have positive fixed costs.
c.
As production expands from A to B to C, the firm may become increasingly difficult to manage efficiently.
d.
The firm's average fixed cost may rise as production increases from B to C.
d
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________ is the relative ease and speed with which an asset can be converted into a medium of exchange
A) Efficiency B) Liquidity C) Deflation D) Specialization
Figure 10-7
Refer to Figure 10-7. Which of the diagrams in Figure 10-7 represents a decrease in consumer spending combined with a positive supply shock?
a.
Panels (A) & (B)
b.
Panels (C) & (D)
c.
Panels (A) & (C)
d.
Panels (B) & (D)
Michael West has trouble getting places on time. He is always late for job interviews and has been out of work for three years. He is ___________ unemployed.
A. frictionally B. structurally C. cyclically D. seasonally
At the short-run break-even point, the perfectly competitive firm is
A. earning positive economic profits. B. just covering its total variable costs. C. earning zero economic profits. D. earning negative economic profits.