Which of the following statements is correct?
A. Marginal cost is the change in the average fixed cost associated with a change in output of one unit.
B. The marginal cost curve intersects the average variable cost curve at its lowest point.
C. If average variable cost is increasing, then average total cost must be increasing too.
D. The marginal cost curve intersects the average variable cost curve at a level of output greater than where the marginal cost curve intersects the average total cost curve.
Answer: B
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The figure above shows a perfectly competitive firm. The firm is operating; that is, it has not shut down. The firm produces
A) 20 units of output and makes zero economic profit. B) 20 units of output and incurs an economic loss. C) 10 units of output and makes zero economic profit. D) 10 units of output and incurs an economic loss.
Inflation usually increases during a recession and decreases during an expansion
Indicate whether the statement is true or false
An indifference curve represents the collection of goods and services that an individual has no desire to consume
Indicate whether the statement is true or false
At a point on a production possibilities curve, opportunity cost of more capital goods today is
A) fewer capital goods in the future. B) fewer consumer goods in the future. C) fewer consumer goods today. D) more unemployed resources in the future.