When a firm increased its output by one unit, its AC rose from $45 to $50. This implies that its MC is
A) $5.
B) between $45 and $50.
C) greater than $50.
D) Cannot be determined from the above information
C
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If you compared the short-run demand and long-run demand for education at your college, you would almost certainly find that
a. the long-run demand curve was steeper than the short-run demand curve. b. a tuition increase would reduce enrollment more in the long run than in the short run. c. a reduction in tuition would increase enrollment in the short run but not in the long run. d. the short-run and long-run demand curves were identical.
The level of real GDP in the long run is
A) called potential GDP. B) affected by changes in the price level. C) determined solely by aggregate demand. D) the same as the level of nominal GDP in the long run.