In order to divide a given production quota between two production processes in such a way as to produce the quota at the lowest possible cost, one should produce the output where
A) average costs are equal for both processes.
B) average cost is equal to marginal cost for both processes.
C) marginal costs are equal in both processes.
D) marginal costs are at least equal to ATC in each process.
Correct Answer:
Verified
Q29: When marginal cost is greater than average
Q30: The AFC curve
A)always slopes downward.
B)is U-shaped.
C)is a
Q31: The MC curve slopes upward due to
A)increasing
Q32: If the total variable cost curve is
Q33: Marginal cost is defined as
A)the rate at
Q35: The vertical distance between the average total
Q36: Markets characterized by declining long-run average costs
Q37: ATC equals
A)AVC - AFC.
B)FC/Q.
C)(TFC + TVC)/Q.
D)MC +
Q38: At one unit of output AVC is
A)zero.
B)infinite.
C)equal
Q39: Say at the current output level marginal
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