Solved

The Below Figure Shows the Various Combinations of the Goods

Question 1

Multiple Choice

The below figure shows the various combinations of the goods X and Y that yield different levels of utility.Figure 7.3
The below figure shows the various combinations of the goods X and Y that yield different levels of utility.Figure 7.3    -Which of the following reflects the correct relationship between average total cost (ATC)  and marginal cost (MC) ? A) When MC > ATC; ATC is falling. B) When ATC is minimum; ATC < MC. C) When MC < ATC; ATC is falling. D) When MC < ATC; ATC is constant. E) When ATC < MC; MC is falling.
-Which of the following reflects the correct relationship between average total cost (ATC) and marginal cost (MC) ?


A) When MC > ATC; ATC is falling.
B) When ATC is minimum; ATC < MC.
C) When MC < ATC; ATC is falling.
D) When MC < ATC; ATC is constant.
E) When ATC < MC; MC is falling.

Correct Answer:

verifed

Verified

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents