The average total cost curve
a. is downward sloping at all levels of output
b. is downward sloping when marginal costs are decreasing and upward sloping when marginal costs are increasing
c. is upward sloping when marginal costs are decreasing and downward sloping when marginal costs are increasing
d. does not vary with output
b
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Regulation is guaranteed to be more efficient than a monopoly
A) True, the government is able to internalize the dead weight loss of the monopoly. B) True, the consumers are better off if government provides the product rather than a private firm. C) False, the government does not always have sufficient information to provide a more efficient market outcome. D) False, the consumers are worse off under government regulation.
Oligopolists may charge a price lower than the profit maximizing price to discourage new firms from entering a market
a. True b. False Indicate whether the statement is true or false