Which of the following is not correct for an individual firm?
a. If the average variable cost (AVC) is decreasing, average total cost (ATC) must be decreasing.
b. AVC reaches minimum before ATC.
c. If ATC is increasing, AVC must be increasing.
d. If AVC is increasing, marginal cost (MC) is increasing.
e. If average fixed cost (AFC) is decreasing, ATC must be decreasing.
e
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The Fed influences the interest rate by using which of the following tools? i. open market operations ii. taxes on bank accounts iii. changes in required reserve ratios
A) i only B) ii only C) iii only D) Both i and iii E) i, ii and iii
Madison has an income of $50, which she spends on Pizza (P) and soft drinks (S). Her marginal rate of substitution is MRSPS = S/P. The price of pizza (PP) is $5 and the price of soft drinks (PS) is $2.50. Finally, the formula for her indifference curves is given by S = 2U/P (a) Find Madison's uncompensated demand curve for pizza. (b) Find Madison's compensated demand curve for pizza
What will be an ideal response?
A pooled OLS estimator that is based on the time-demeaned variables is called the _____.
A. random effects estimator B. fixed effects estimator C. least absolute deviations estimator D. instrumental variable estimator
A bank has $100 million of checkable deposits, $6 million of required reserves, and $2 million of excess reserves. What is the required reserve ratio?
A. 2 percent B. 3 percent C. 6 percent D. 12 percent