Describe the relationship between average variable cost and marginal cost
If marginal cost (MC) is greater than average variable cost (AVC), then AVC will increase. If MC is less than AVC, then AVC will decrease. If MC equals AVC, then AVC is unchanged. The minimum of AVC curve will intersect with the MC curve.
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Buffalo Wild Wings CEO Sally Smith decided to spend more than $200 million on restaurant renovations in an attempt to attract more lunch customers and more families
Like CEOs of other monopolistically competitive firms, Smith knew that without innovating A) her firm would become perfectly competitive. B) her firm had no chance of remaining in business. C) her firm would eventually earn an accounting profit of zero. D) her firm's profits would eventually be competed away by other firms.
Studies show that the demand curve for peas has shifted. Which of the following explanations would you reject first?
a. The price of string beans has changed. b. The demand for corn has changed. c. The demand for string beans has changed. d. The income of consumers has changed. e. The price of peas has changed.