If marginal cost is less than average cost, at current levels of production,
a. average cost is increasing with output.
b. average cost is decreasing with output.
c. total cost is decreasing.
d. average cost is at a minimum.
b. average cost is decreasing with output.
You might also like to view...
How does equilibrium expenditure come about? What adjusts to achieve equilibrium?
What will be an ideal response?
In the graph of supply and demand in the market for labor:
A. individuals make up the demand curve. B. the equilibrium price of labor is generally denoted as L*. C. firms provide the demand. D. equilibrium is rarely achieved.
A tax on a good
a. gives buyers an incentive to buy less of the good than they otherwise would buy. b. gives sellers an incentive to produce more of the good than they otherwise would produce. c. creates a benefit to the government, the size of which exceeds the loss in surplus to buyers and sellers. d. All of the above are correct.
Describe one of the two reasons given in the textbook to help explain why price and quantity demanded are inversely related