If a firm's marginal cost is smaller than its average total cost, its average total cost is
A. decreasing.
B. not U-shaped.
C. increasing.
D. constant.
Answer: A
You might also like to view...
Refer to the above table. If opportunity costs are constant, each nation produces only the one good for which it has a comparative advantage, and trade can occur between the two countries
A) country X will produce product A and country Y will produce product B. B) country X will produce product B and country Y will produce product A. C) country X will refuse to trade with country Y since country X has a comparative advantage in both products. D) country Y will refuse to trade with country X since country Y has a comparative advantage in both products.
If a nation can produce greater quantities of a good than another nation, it has a(n)
a. comparative advantage. b. absolute advantage. c. declarative advantage. d. entire advantage.
(Consider This) Which of the following claims is not made by defenders of lotteries?
A. Lotteries are a relatively painless way to fund important government services. B. Lotteries help reduce organized crime by providing an alternative to illegal gambling. C. Lotteries are preferable to taxes because they are voluntary. D. Lotteries are progressive in nature, with higher income families playing more frequently.
Why is deflation, combined with a recessionary gap, and a nominal interest rate that cannot be reduced a monetary policymaker's nightmare?
What will be an ideal response?