Which of the following is correct as it relates to cost curves?
A. Marginal cost intersects average fixed cost at the latter's minimum point.
B. Average fixed cost intersects marginal cost at the latter's minimum point.
C. Marginal cost intersects average total cost at the latter's minimum point.
D. Average variable cost intersects marginal cost at the latter's minimum point.
Answer: C
You might also like to view...
The term cross-price refers to the idea that:
a. the price of one good is affecting the quantity demanded of a different good. b. the demand of one good is affecting the quantity demanded of a different good. c. the price of one good is affecting the quantity supplied of a different good. d. the supply of one good is affecting the quantity demanded of a different good.
Which of the following will most likely occur in the short run if long-run equilibrium is disturbed by an unanticipated decrease in aggregate demand?
a. a decrease in output and a higher price level b. an increase in output and a higher price level c. a decrease in output and a lower price level d. an increase in output, while prices remain unchanged
In the long run:
A. per-unit costs are fixed. B. all inputs are fixed. C. all inputs are variable. D. some inputs are not variable.
A decrease in taxes (when Ricardian equivalence does not hold) causes the real interest rate to ________ and the price level to ________ in general equilibrium.
A. rise; fall B. fall; rise C. rise; rise D. fall; fall