If both the marginal cost and the average variable cost curves are U-shaped, which of the following is true over the range of output for which the average variable cost curve has a negative slope?
a. The marginal cost curve must have a negative slope
b. The average total cost curve must have a negative slope.
c. The marginal cost curve is below the average variable cost curve.
d. both (b) and (c) are correct.
d
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The long-run supply curve under pure competition is derived by observing what happens to market price and quantity when market:
A. Demand changes, and all consequent long-run adjustments have occurred B. Supply changes, and all consequent long-run adjustments have occurred C. Technology changes, and all consequent long-run adjustments have occurred D. Regulation changes, and all consequent long-run adjustments have occurred
The criteria of Expected Monetary Value (EMV) is used for making decisions when
a. you are certain of the outcome. b. you have no knowledge of possible outcomes. c. you can assign a probability to each outcome. d. all of the above e. none of the above