Discuss the relation between average variable cost (AVC) and marginal cost (MC) curves
The AVC and the MC curves depict an important relationship. At outputs less than the minimum of average variable cost (i.e., where the AVC curve is falling) marginal cost is less than average variable cost. Similarly, where the AVC curve is rising marginal cost is greater than average variable cost. Finally, if average variable cost is constant (as occurs near the minimum of AVC), it equals marginal cost. However, the reverse implications are not necessarily true—immediately to the left of the minimum of AVC, MC is below it but the marginal cost curve itself is rising.
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Between 1967 and 1999, the industrial structure of the U.S. experienced which of the following changes?
(a) The industries experiencing slow or negative growth—primary metals, transportation, mining and steel—sought protection from competition from the federal government. (b) All major nondurable sectors experienced growth. (c) Machinery and electronics experienced rapid growth. (d) All of the above.
People who always choose not to participate in fair games are called:
a. risk takers. b. risk averse. c. risk neutral. d. broke.