The relationship between the long-run total cost curve and the marginal and average cost curves is best described by which of the following statements?
A) The slope of the total cost curve from the origin to a point on the total cost curve is how you derive the marginal cost curve while the average cost is given by TC/Q.
B) Marginal cost is MC/Q while average cost is TC/Q.
C) Marginal cost is derived by dividing total cost by a constant as is average cost.
D) The slope of the total cost curve at each point is how you derive the marginal cost curve while the slope from the origin to a point on the total cost curve is how you derive the average cost curve.
Correct Answer:
Verified
Q1: When the prices of all inputs increase
Q3: The long-run total cost curve shows:
A)the various
Q4: When average cost is "u-shaped" (neither always
Q5: A long-run total cost curve:
A)must be equal
Q6: Assume that capital is measured along
Q7: A firm's long-run average cost curve is
Q8: When the price of all inputs increase
Q9: The long-run total cost curve tends to:
A)rotate
Q10: Suppose for a particular production function,
Q11: A long-run total cost curve:
A)always has a
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