If the average variable cost curve is above the marginal cost curve, then
A) marginal costs must be decreasing.
B) average variable costs must be increasing.
C) marginal costs can be either increasing or decreasing.
D) marginal costs must be increasing.
Answer: C) marginal costs can be either increasing or decreasing.
You might also like to view...
The key indicator of a country's living standard and economic well-being is:
A. real GDP. B. the interest rate. C. real GDP per person. D. nominal GDP per person.
When there is a recessionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; lower; decline B. increase; raise; decline C. decline; lower; expand D. decline; raise; decline
An economy that engages in international trade is called
A) a cooperative economy. B) a modern economy. C) an engaged economy. D) an open economy.
Bart operates a lemonade stand in front of his house. His father works at the Springfield Nuclear Power Plant. Which of the following is most likely to be true?
a. The long run is the same for the power plant as it is for the lemonade stand. b. The long run is longer for the power plant than it is for the lemonade stand. c. The long run is shorter for the power plant than it is for the lemonade stand. d. We cannot compare the long runs because these are different businesses. e. It's impossible for the power plant short run to be shorter than the lemonade stand's long run.