If the short-run average variable cost of production for a firm is decreasing, then it follows that
A. average variable cost must be greater than marginal cost.
B. marginal cost must be decreasing.
C. average variable cost must be greater than average fixed cost.
D. average fixed cost must be constant.
Answer: A
You might also like to view...
The figure illustrates Sally's budget line and her preferences. At point(s) ________, the marginal rate of substitution is equal to the relative price
A) B B) B, C, and E C) D D) E and C
The argument that strategic planning is not likely to be practical due to insufficient information means that
A) because of trade secrets, the government does not know true cost relationships in any given industry. B) if the government had all the relevant information in a given industry then it could decide whether a subsidy would enhance the public's welfare. C) even if the government had all the relevant information in a given industry, it still could not decide whether a subsidy would enhance the public's welfare. D) due to recent cuts in the Department of the Census' sampling budgets, industry surveys are no longer reliable, so that there is no way to determine if a subsidy is in the public's interest. E) the government would need to employ its intelligence agencies in order to gain a complete understanding of the market.
Sonja paid $15,000 in taxes after having earned $100,000 . Amanda paid $22,000 in taxes after having earned an income of $146,667.This is an example of a proportional tax
a. True b. False Indicate whether the statement is true or false
Suppose the government places a per-unit tax on a good. The smaller the price elasticities of demand and supply for the good, the
a. smaller the deadweight loss from the tax. b. greater the deadweight loss from the tax. c. less efficient is the tax. d. more equitable is the distribution of the tax burden between buyers and sellers.