Explain how the value of marginal cost affects the values of average variable cost and average total cost and what this means for the relationship between the marginal cost curve and the average variable and total cost curves
What will be an ideal response?
So long as the value of marginal cost is less than the value of average variable (total) cost, an increase in output will cause average variable (total) cost to decrease. When marginal cost is greater than the value of average variable (total) cost, an increase in output will cause average variable (total) cost to increase. The result is that the the marginal cost curve will intersect the average variable and average total cost curves at their respective minimum points.
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In addition to the chairman of the Board of Governors, the FOMC consists of ________
A) six rotating members of the Board of Governors and five presidents of Federal Reserve banks B) six other members of the Board of Governors, four rotating bank presidents and the president of the New York Federal Reserve C) six other members of the Board of Governors and five presidents of Federal Reserve banks; all twelve rotating members D) twelve Federal Reserve Bank presidents E) none of the above
Total costs never decrease as output increases
Indicate whether the statement is true or false