If a firm did not have any fixed costs at all, then the ATC curve would be
a. the same as the AVC curve.
b. horizontal.
c. positive and linear.
d. none of these.
d. none of these.
You might also like to view...
The “law” of diminishing returns asserts that marginal returns will ultimately diminish when the quantity of one input is increased.
Answer the following statement true (T) or false (F)
Since there are smaller fluctuations in the equilibrium prices of final goods than in the prices of intermediate goods, the producer price index is more volatile than the consumer price index
a. True b. False Indicate whether the statement is true or false
A portrait photographer produces packages of 100 photos. If sales increase from 600 to 700 packages, total revenue increases from $1,200 to $1,400 . The marginal revenue per photo of the 700th package is
a. $200 b. $100 c. $20 d. $2 e. $1
If Argentina has an absolute advantage in the production of beef and Guatemala has an absolute advantage in the production of bananas, then
A. it is reasonable to expect that specialization will benefit both countries, but trade will not. B. neither country has anything to gain from specialization and trade. C. it is reasonable to expect that trade will benefit both countries, but specialization will not. D. it is reasonable to expect that specialization and trade will benefit both countries.