Can a firm's average cost be rising if it is greater than the firm's marginal cost? Explain
No. Average cost is determined by marginal cost. If the marginal cost is lower than the average cost, then it
is pulling the average cost down, and so the average cost will be falling.
Economics
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The "lemons problem" in the used car market arises from
A) the difficulty U.S. producers have in making reliable cars. B) the difficulty buyers have in distinguishing good cars from lemons. C) the tendency of buyers of used cars to pay for them with bad checks. D) the reluctance of many car dealers to handle used cars.
Economics
If the firm hires 8 workers, the total amount of fixed costs equals
a. $6200 b. $1000 c. $600 d. $1200
Economics