If total cost increases as output increases, then:
a. marginal cost must be equal to zero.
b. marginal cost must be positive
c. marginal cost must be negative.
d. marginal cost must be increasing.
b
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Capital is appropriately classified as a
A. flow. B. process. C. stock. D. growth rate.
A firm’s total revenue is simply the price of its product multiplied by the quantity sold.
Answer the following statement true (T) or false (F)
Exhibit 8-17 Marginal revenue and cost per unit curves
As shown in Exhibit 8-17, the short-run supply curve for the firm corresponds to which segment of its marginal cost curve?
A. C and all points above. B. B and all points above. C. A and all points above. D. A to C only.
Other things equal, which of the following might shift the demand curve for gasoline to the left?
A. The discovery of vast new oil reserves in Montana. B. The development of a low-cost electric automobile. C. An increase in the price of train and air transportation. D. A large decline in the price of automobiles.