Say at the current output level marginal costs = $20 and the average total cost = $10. From this information we know that:
A) the marginal costs are increasing
B) the average total costs are increasing
C) the average total costs are decreasing
D) the marginal costs are decreasing
Correct Answer:
Verified
Q20: Output for a simple production process is
Q32: Average variable cost is
A)The ratio of total
Q33: MC equals Q34: In order to divide a given production Q35: Average fixed cost Q37: ATC equals Q37: When marginal cost is greater than average Q38: The slope of a ray from the Q40: The AFC curve Q41: With constant returns to scale and factor
A)
A)Is a horizontal line
B)Increases steadily
A)AVC - AFC.
B)FC/Q.
C)(TFC + TVC)/Q.
D)MC +
A)Always slopes downward
B)Is U-shaped
C)Is a
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