The average total cost curve is U-shaped. At the quantity of output where average total cost is at its minimum, is the marginal cost curve above the average total cost curve, below the average total cost curve,
or intersecting the average total cost curve?
When the average total cost is at its minimum, the average total cost equals the marginal cost. Therefore at the quantity of output where the average total cost is at its minimum, the marginal cost curve intersects the average total cost curve.
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Restricting access to endangered common resources assigns
A) permanent property rights to those people given permission to use the resource. B) temporary property rights to those people given permission to use the resource. C) property rights to no one since access has been restricted to only a select few. D) property rights to society in general since the resource is a common resource.
Suppose that an economy produces food and clothing, and a technological innovation occurs that enhances the productivity of resources used in producing both goods. Which of the following would be consistent with this situation?
a. There is a parallel outward shift of the PPF. b. The PPF rotates outward along the food axis, and remains fixed at the point of maximum clothing production. c. The PPF rotates outward along the clothing axis, and remains fixed at the point of maximum food production. d. There is a parallel inward shift of the PPF.