Which of the following statements is false?
A) The difference between average total cost and average fixed cost is average variable cost.
B) The marginal cost curve intersects the average variable cost curve and the average total cost curve at their minimum points.
C) Firms often refer to the process of lowering average fixed cost as "spreading the overhead."
D) When marginal cost equals average total cost, average total cost is at its highest value.
D
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If a country must decrease current consumption to increase the amount of capital goods it produces today, then it must
A) be using resources inefficiently today, but will be more efficient in the future. B) be producing along the production possibilities frontier today and its production possibilities frontier will shift outward if it produces more capital goods. C) must be producing outside the production possibilities frontier and will continue to do so in the future. D) must not have private ownership of property and will have to follow planning authorities' decisions today and in the future.
A sudden rise in the market demand in a competitive industry leads to
a. A short run market equilibrium price higher than the original equilibrium b. A market equilibrium lower than the short run price c. Entry of new firms into the market d. All of the above