If the average variable cost of a firm is falling, then the:
a. average fixed cost must be rising.
b. marginal cost must be falling.
c. marginal cost must be rising.
d. marginal cost lies below the average variable cost.
e. marginal cost lies above the average variable cost.
d
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Which of the following statements is FALSE?
A) The production possibilities curve shows the combinations of goods that can be consumed by a nation after trade and specialization begins. B) The production possibilities curve shows the combinations of goods that can be consumed by a nation before trade begins. C) The production possibilities curve shows the combinations of goods that can be produced by a nation after trade and specialization begins. D) The production possibilities curve shows the combinations of goods that can be produced by a nation before trading begins.
If demand for a good is price elastic, then the price elasticity will be:
a. equal to one. b. equal to zero. c. greater than one. d. less than one. e. less than zero.