Which of the following about costs is always true?
a. When marginal costs are less than average total costs, average total costs will be decreasing.
b. When average fixed costs are falling, marginal costs must be less than average fixed costs.
c. When average fixed costs are rising, marginal costs must be greater than average total costs.
d. When marginal costs are greater than average total costs, average total costs will be decreasing.
A
You might also like to view...
Corporations produce most of the output in the United States.
Answer the following statement true (T) or false (F)
Suppose Happy Cows has a marginal cost equal to 0.5Q and Free Cows has a marginal cost equal to 2Q.
A) All else equal, neither Free Cows nor Happy Cows can benefit from an accurate forecast. B) All else equal, an accurate forecast is more valuable to Free Cows than Happy Cows. C) All else equal, an accurate forecast has the same value to both Free Cows and Happy Cows. D) All else equal, an accurate forecast is more valuable to Happy Cows than Free Cows.
In this graph, why is there a loss?
a. ATC is equal to D at q*.
b. P* is less than ATC at q*.
c. ATC is more than the MR at q*.
d. P* is equal to D at 0.
Refer to the information provided in Figure 2.3 below to answer the question(s) that follow.
Figure 2.3Refer to Figure 2.3. Assume that in this society the opportunity cost of sailboats in terms of surfboards is increasing. A graph of this society's production possibility frontier will be represented by Panel
A. A. B. B. C. C. D. D.