With respect to the average cost curves, the marginal cost curve
a. intersects average total cost, average fixed cost, and average variable cost at their minimum points
b. intersects average total cost, average fixed cost, and average variable cost at their maximum points
c. intersects both average total cost and average variable cost at their minimum points
d. intersects average total cost where it is increasing and average variable cost where it is decreasing
e. intersects only average total cost at its minimum point
QUESTION 2The relationship between average and marginal variables can be stated as follows: if the marginal is greater than the average,
a. the average is increasing
b. the average is decreasing
c. the marginal is increasing
d. the marginal is decreasing
e. the total is decreasing
QUESTION 3The marginal cost curve intersects the average variable cost curve (AVC)
a. only when the AVC is rising
b. at the AVC curve's maximum point
c. at the AVC curve's minimum point
d. only when the AVC is sloping downward
e. when the AVC intersects the fixed cost curve
QUESTION 4The marginal cost curve intersects the average total cost curve (ATC)
a. at the ATC's minimum point
b. only when the ATC is sloping upward
c. at the ATC's maximum point
d. only when the ATC is sloping downward
e. when the ATC intersects the fixed cost curve
QUESTION 5Which of the following is true in the short run at the output level where average total cost is at its minimum?
a. Marginal cost equals average total cost.
b. Average variable cost equals fixed cost.
c. Marginal cost equals average variable cost.
d. Average total cost equals average fixed cost.
e. Average total cost equals average variable cost.
QUESTION 6As output expands, the slope of the average total cost curve
a. stays negative throughout
b. stays positive throughout
c. is first negative and then positive
d. is first positive and then negative
e. is constant
QUESTION 7Which of the following is true of the MC curve?
a. It intersects the ATC curve at its minimum, but it does not intersect the AVC curve at its minimum.
b. It intersects the AVC curve at its minimum, but it does not intersect the ATC curve at its minimum.
c. It intersects both the ATC and the AVC curves at their minimums.
d. It intersects both the ATC and the AFC curves at their minimums.
e. It intersects both the AVC and the AFC curves at their minimums.
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