If the average variable cost of a firm is falling, then the:
a. average fixed cost must be rising.
b. marginal cost must be falling.
c. marginal cost must be rising.
d. marginal cost lies below the average variable cost.
e. marginal cost lies above the average variable cost.
d
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The consumption function shows that when disposable income increases by one dollar, consumption expenditure
A) does not change. B) increases by more than a dollar. C) increases by one dollar. D) decreases by less than a dollar. E) increases by less than a dollar.
An outward shift of the production possibilities curve represents
A) economic contraction. B) economic growth. C) economic recession. D) economic inflation.
The championship game will be held next weekend in your college's 40,000-seat stadium. The supply of tickets to the game:
A. is perfectly inelastic. B. is elastic. C. will increase because the price charged will be higher. D. depends on which teams make it to the championship game.
Which of the following statements about economic resources is false?
A) Economic resources include financial capital and money. B) Economic resources are also called factors of production. C) Economic resources are used to produce goods and services. D) Some economic resources are human-made while others are found in nature.