How does marginal cost compare with average cost when average cost is falling, and when it is rising?
Correct answer D. Less than average cost, greater than average cost
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Costs , Supply And Perfect Competition MCQs
Page 3 of Costs , Supply And Perfect Competition multiple-choice questions with answers. Tap an option to check yourself.
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- Miscellaneous Economics 737
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- Market 87
- Macroeconomic Issues and Analysis 75
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- Introduction To Economics 70
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- Profit Maximizing Under Perfect Competition And Monopoly 56
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- Costs , Supply And Perfect Competition 44
- Human Capital 42
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- Characteristics and Institutions of Developing Countries 24
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- Average And Total Cost 14
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- Monetary Union 10
Short-run average total cost is equal to the sum of which two components?
Correct answer C. Short-run average variable costs, short-run average fixed costs
Under what condition will a firm produce zero output in the short run?
Correct answer B. Price is less than short-run average variable cost
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For a competitive firm, which curves form its short-run supply curve and its long-run supply curve respectively?
Correct answer A. SMC above SAVC, LMC above LAC