11. Suppose a firms' average variable cost curve has the typical U-shaped form, if so, then the following is true: A) The average variable cost curve reaches a minimum point where it intersects the marginal cost curve. B) The firms' average product of labour curve must have an inverted U-shape. C) The firms' average product of labour curve reaches a maximum where the output of that labour is equal to the output where the average variable cost curve is minimized. D) If the marginal cost falls below the average variable cost curve, then the average variable cost curve is downward sloping. E) All of the above F) A & B G) A & C H) A & D I) A, B& D. J) None of the above.
11. Suppose a firms' average variable cost curve has the typical U-shaped form, if so, then the following is true: A) The average variable cost curve reaches a minimum point where it intersects the marginal cost curve. B) The firms' average product of labour curve must have an inverted U-shape. C) The firms' average product of labour curve reaches a maximum where the output of that labour is equal to the output where the average variable cost curve is minimized. D) If the marginal cost falls below the average variable cost curve, then the average variable cost curve is downward sloping. E) All of the above F) A & B G) A & C H) A & D I) A, B& D. J) None of the above.
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter7: Production, Costs, And Industry Structure
Section: Chapter Questions
Problem 33CTQ: Average cost curves (except for avenge fixed cost) tend to be U-shaped, decreasing and then...
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