Figure 5-8
In Figure 5-8, the consumer is indifferent between the combinations of beer and wine coolers indicated by points
a.
A, C.
b.
B, D.
c.
C, B.
d.
A, B.
d
Economics
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Which of the following statements about cost curves is always true?
a. ATC decreases as output increases. b. AFC increases as output increases. c. AFC lies above AVC. d. ATC lies above AVC. e. MC lies below ATC.
Economics
In long-run equilibrium, the perfectly competitive firm produces
A. where P = MC = AC. B. at the lowest point on its long-run average cost curve. C. where its long-run average cost curve is tangent to its horizontal demand curve. D. All of the responses are correct.
Economics