If a firm's average total costs fall as it produces a larger output,
a. average variable cost must also decline as output expands.
b. marginal cost must also decline as output expands.
c. average fixed cost must be less than average variable costs.
d. marginal cost must be less than average total cost.
D
Economics
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In the figure above, the tariff ________ the domestic production of shirts in the United States by ________ per year
A) increases; 8 million B) decreases; 16 million C) increases; 4 million D) decreases; 8 million
Economics
If I is gross investment, K is capital stock, and "d" is the ratio of replacement investment to the capital stock, then Tobin's q is
A) q = I/K - d. B) I = Kq + d. C) I/K = j (q - 1 ) = d D) q = I/K (j - 1 ) - d.
Economics