Which of the following holds true?
A. There is no relationship between AP and AVC.
B. When MP is rising AVC is falling, and when MP is falling AVC is rising.
C. When AP is rising AVC is falling, and when AP is falling AVC is rising.
D. When AP is rising AVC is rising, and when AP is falling AVC is falling.
Answer: C
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Which statement is false?
A. Cigarettes, motor vehicles, and pipelines are industries with high concentration ratios. B. Oligopolized industries have higher concentration ratios than monopolistic competitors. C. The Electric Machinery Conspiracy case involved covert collusion. D. None of these statements are false.
Refer to the above figure. What are the price and quantity if this monopolist is required to use average cost pricing?
A. P2, Q1 B. P1, Q4 C. P3, Q3 D. P5, Q1