Suppose there is a firm with a fixed cost of $10 and the firm produces furniture that requires wood and labor as inputs. When does the firm's average total cost curve intersect the average variable cost curve?
a. when the price of furniture falls below $10
b. at the minimum of the average total cost curve
c. at the point of greatest labor efficiency
d. when the marginal cost curve intersects the average variable cost curve
e. never
E
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Currently, the United States has an import quota on the amount of sugar that is allowed to be imported into the United States
What would happen to the price of sugar in the United States if the import quota was removed? What would happen to U.S. consumption and U.S. production of sugar?
A retired athlete built a gym near his house that could be used for free by all the residents in the neighborhood. However, the overuse of the facilities soon led to irreparable damages. This is an example of the ________
A) tragedy of the commons B) pecuniary externality C) paradox of thrift D) prisoners' dilemma