Which statement is correct?
A. Marginal cost is the change in average cost when there is a change in output of 1 unit
B. The marginal cost curve cuts the average variable cost curve at its lowest point
C. The marginal cost curve cuts the average variable cost curve at an output greater than where the marginal cost curve cuts the average cost curve
D. If average variable cost is increasing, then average total cost must be increasing too
B. The marginal cost curve cuts the average variable cost curve at its lowest point
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Refer to Figure 9-1. Under autarky, the consumer surplus is
A) $195. B) $260. C) $300. D) $555.
Under fixed exchange rate, the response of an economy to a temporary fall in foreign demand for its exports is
A) the currency appreciates, and output falls. B) the currency depreciates, and output falls. C) the currency remains the same, and output decreases. D) the currency depreciates, and output remains constant. E) the currency appreciates, and output remains the same.