The marginal cost curve intersects the short-run average total cost curve where:
A. marginal cost is minimized in the short run.
B. average variable costs are minimized in the short run.
C. average total costs are minimized in the short run.
D. average variable costs are maximized in the short run.
Answer: C
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Usury laws lead to
A. a surplus of loanable funds. B. a shortage of loanable funds. C. a floor under interest rates. D. more lenders than borrowers.
Refer to the above graph. To maximize profits, the firm should produce the quantity:
a. 0C b. 0A c. 0K d. 0B
Opportunity cost is
A. the additional cost of buying an additional unit of a product. B. the additional cost of producing an additional unit of output. C. that which we forgo, or give up, when we make a choice or a decision. D. a cost that cannot be avoided, regardless of what is done in the future.
Scarcity can best be defined as a situation in which
A. consumers look for bargains. B. some producers are selfish with resources. C. people respond to incentives. D. all wants cannot be satisfied due to resource constraints.