Curve A is always declining because
a. marginal product first decreases, then increases
b. of diminishing marginal product.
c. we are dividing fixed costs by higher and higher levels of output.
d. marginal product first increases, then decreases.
Answer: c. we are dividing fixed costs by higher and higher levels of output.
You might also like to view...
Explain the law of demand. What does it imply about the shape of the demand curve?
What will be an ideal response?
The perfectly competitive firm's long-run supply curve is
a. the same as the industry's supply curve b. the average total cost curve c. perfectly horizontal d. the marginal cost curve above the ATC e. the marginal cost curve above the AVC
One might expect the interest rate correlation between nonpegs and closed economies with the base currency to be ____, but because of other circumstances, there may be a ____ correlation.
A) negative; positive B) positive; negative C) zero; positive D) negative; zero
Which of the following cities does not have a Federal Reserve Bank located in it?
A. Denver B. San Francisco C. Atlanta D. Chicago