Which of the following statements is false?
A) When marginal cost equals average total cost, average total cost is at its highest value.
B) The marginal cost curve intersects the average variable cost curve and the average total cost curve at their minimum points.
C) The difference between average total cost and average fixed cost is average variable cost.
D) Firms often refer to the process of lowering average fixed cost as "spreading the overhead."
Answer: A
You might also like to view...
The belief that everyone should have exactly the same amount of income is
A) merit standard. B) comparable-worth doctrine. C) egalitarian principle. D) Lorenz principle.
Monetary neutrality implies that an increase in the quantity of money will
a. increase employment. b. increase the price level. c. increase the incentive to save. d. increase the real interest rate.
Suppose an economy's trend growth rate is 3 percent and current output is $10 trillion. If the economy enters a recession where output declines by 5 percent in one year, by how much does output have to rise to return to its trend? Assume it takes two years for the economy to return to its trend.
A. $1.7 trillion B. $1.4 trillion C. $0.5 trillion D. $0.6 trillion
Last year you purchased 20 CDs at $12 a piece, 10 shirts at $15 each, and 5 sweaters at $30 each (total spending equals $540). This year you buy 18 CDs at $15 each, 10 shirts at $16 each, and 6 sweaters at $36 each (total spending equals $640)
If last year's index was 100, this year's index A) is 119.6. B) is 118.5. C) is 83.6. D) is 30.