The marginal cost curve always intersects the average total cost curve at the minimum of average total cost.
Answer the following statement true (T) or false (F)
True
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Which of the following factors will NOT cause a shift in the demand for a good?
A) A change in consumer incomes B) A change in the market price of the good C) A change in the number of consumers D) A change in tastes and preferences
In the short run, the point at which diminishing marginal returns to labor begin is the point at which the marginal cost curve
A) peaks. B) bottoms out. C) is upward sloping. D) is downward sloping.
The market for a perfectly competitive industry clears at a price of $3, and the minimum average cost for all firms is $2.50. In the long run, we would expect an increase in
A. each firm’s output. B. the number of firms. C. each firm’s profit. D. each firm’s average cost.
Units of CapitalNumber of WorkersOutput/Day50051405290531505420055235
Refer to Table 2.3. The principle of diminishing returns first occurs when how many workers are hired?
A. 2 B. 3 C. 4 D. 5