If marginal cost is increasing then:
a. marginal product must be increasing
b. average variable cost must be increasing.
c. average total cost must be increasing.
d. none of the above must necessarily be true.
d
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The relationship between a firm's advertising expenditure and its profit is studied under:
A) international economics. B) microeconomics. C) public economics. D) macroeconomics.
When consumption spending is greater than disposable income, we know with certainty that we have
A) dissaving. B) negative net investment. C) excess thrift. D) positive savings.
The rule of MC = MR does not apply to a monopolist.
Answer the following statement true (T) or false (F)
Suppose all firms in a perfectly competitive industry are earning an economic profit. One would expect that, over time, the number of firms in the industry will ________ and the market price will ________.
A. rise; rise B. rise; stay the same C. rise; fall D. fall; rise