1. True or Falsej. A service for which the demand curve lies everywhere below the average costcurve should never be provided.k. The optimal level of provision of a service is found where marginal benefit isequal to long run marginal cost.1. If capacity costs decline with the level of provision, the service will operate at aprofit at the optimal level of provision.

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Answered: 1. True or False j. A service for which…

1. True or False j. A service for which the demand curve lies everywhere below the average cost curve should never be provided.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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