In the short run, which of the following statements is correct?
A. The marginal cost curve intersects the average variable and average fixed cost curves at
their minimum points.
B. Average variable cost declines continuously as total output is expanded.
C. Total cost will exceed variable cost.
D. If the inputs of all resources are increased by equal amounts, total output will expand by
diminishing amounts.
Answer: C
You might also like to view...
During the Great Depression, real GDP decreased by roughly ____ percent and unemployment rose to roughly ____ percent
a. 5; 10 b. 20; 10 c. 30;25 d. 50;25
Jane was a partner at a law firm earning $223,000 per year. She left the firm to open her own law practice. In the first year of business she generated revenues of $347,000 and incurred explicit costs of $163,000 . Jane's economic profit from her first year in her own practice is
a. -$39,000. b. $124,000. c. $163,000. d. $184,000.