If average total cost is decreasing as more and more units are produced, then marginal cost must be
A) rising.
B) constant.
C) below average total cost.
D) negative.
Answer: C
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Which of the following are examples of the gross private domestic investment component of GDP?
I. the purchase of production machinery by IBM II. an increase in the finished goods inventory at Intel A) I only B) II only C) both I and II D) neither I nor II
Other things constant, a decrease in resource prices will lead to
a. reduced profits and a reduction in short-run aggregate supply. b. increased profits and a reduction in short-run aggregate supply. c. reduced profits and an increase in short-run aggregate supply. d. increased profits and an increase in short-run aggregate supply.
Toyota (a Japanese-based company) produces Tundras in the state of Texas. In which country’s GDP is it included?
A. Japan and the United States B. Japan because Toyota is a Japanese company C. The United States because that is where it was produced D. Neither country because it is sold internationally
Inflation in the U.S. economy tends to be:
A. a finite, one-time event resulting from a shock. B. ongoing, as increases in aggregate demand generally exceed the increases in aggregate supply. C. a finite, one-time event as the Fed actively works to eliminate all inflation. D. ongoing, as aggregate supply is continually shifting to the left.