Draw a graph showing a short-run average variable cost curve, a short-run average total cost curve, and a short-run marginal cost curve. Briefly explain the shape of each curve and how they relate to each other.
What will be an ideal response?
As shown in the graph, the short-run average variable cost curve and the short-run average total cost curve have U shapes, and the short-run marginal cost curve intersects the other two at their minimum points.
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Fill in the blank: According to your textbook authors, ________ is a key condition for competition to occur
A) government regulation of price B) government regulation of output C) preservation of profit D) freedom of entry
The above figure shows the isoquants for producing steel. When producing between 10,000 and 20,000 tons there are
A) increasing returns to scale. B) decreasing returns to scale. C) constant returns to scale. D) economies of scale.
What is the "medium of exchange" function of money?
a. A common measurement of the relative value of different goods and services. b. The ability of money to hold value over time c. The quality of money not to be hoarded because of its commodity value. d. The function of money to be widely accepted I exchange for goods and services.
Road traffic
a. should be provided free of charge b. is efficient on a toll road c. creates a positive externality d. is efficient in London, England e. creates a negative externality