Average variable cost will decrease if __________
Fill in the blank(s) with correct word
marginal cost is less than AVC
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Assume that Virgil purchases a combination of products Y and Z such that, after he is done spending his entire budget, MUy / Py = 25 and MUz / Pz = 25. Based on the equal marginal principle, Virgil
A. should have purchased more Y and more Z. B. should have purchased less Y and more Z. C. is maximizing his total utility. D. should have purchased more Y and less Z.
For most industries, average costs decrease indefinitely as output expands.
Answer the following statement true (T) or false (F)
The mangers of Healthy Snacks and Healthy Bars are engaged in a strategic interaction in which their interests are aligned, but there is more than one possible equilibrium. All of the following can help the managers determine the equilibrium outcome except which one?
A) an announcement by Healthy Snacks regarding their future plans, but not an announcement by Healthy Bars regarding their future plans B) the Pareto criterion C) an announcement made by either firm regarding their future plans D) a focal point
Refer to the table below. If Stuffed Pies is currently producing 11 units of quality, to maximize profit, Stuffed Pies should ________ the units of quality.
Stuffed Pies is a frozen calzone manufacturer. The table above summarizes Stuffed Pies' marginal revenue and marginal cost of quality at various quality amounts.
A) not change
B) decrease
C) increase
D) increase by 50 percent