Whenever marginal cost is below average cost, average cost must fall as output increases

Advertising is very important to firm operating in: a. perfect competition but not in monopolistic competition

b. monopolistic competition but not in perfect competition. c. perfect competition and monopolistic competition but not in monopoly. d. none of the above

The labor supply curve:

A. shows the relationship between the total quantity of labor supplied by all firms in the economy and the wage rate. B. shows that, all things being equal, more workers will want to work when wages are higher and less will want to work when wages are lower. C. has a negative slope. D. All of these are true.