If marginal cost exceeds average variable cost but is less than average total cost, then as output increases average total cost ________ and average variable cost ________
A) increases; decreases
B) decreases; decreases
C) increases; increases
D) decreases; increases
D
You might also like to view...
Those who favor an active approach to policy and those who favor a passive approach disagree not only on how quickly the government can act but also on how stable the economy basically is
a. True b. False Indicate whether the statement is true or false
Which of the following is true about land rent? a. It is the difference between the payment for using land in production and the cost of such use
b. When the supply curve of land is horizontal, the position of the demand determines rent. c. It is a cost to landowners who rent the use of land. d. When the supply curve of land is vertical, the supply curve determines rent. e. When the supply curve of land is downward sloping, both the demand and supply curves determine rent.
Microeconomics focuses on: a. economic growth
b. trade balances. c. unemployment. d. the actions of individual households.
If a price floor of $10 a bottle is imposed on wine from California,
a. all wine from California becomes more expensive. b. all wine from California becomes cheaper. c. the price of some wines will increase. d. the price floor will have no effect.