21. Which of the following is not true? a. Marginal cost intersects average variable cost at its minimum point. b. Marginal cost intersects average total cost at its minimum point. c. Marginal cost intersects average fixed cost at its minimum point. d. Average fixed cost intersects average variable cost at its minimum point. 22. If a consumer moves upward along an indifference curve, his or her total utility: a. remains constant. b. first decreases, then increases. c. increases. d. first increases, then decreases. 23. Jill Smith, a careful maximizer of utility, consumes only two goods, peanut butter and ice cream. She had just achieved the utility-maximizing solution in her consumption of the two goods when the price of peanut butter rose. As she adjusts to this event, she will consume: a. more peanut butter and more ice cream. b. less peanut butter and less ice cream. c. more peanut butter and less ice cream. d. less peanut butter and more ice cream. 24. In the long run: a. the firm considers all factors as fixed. b. the firm considers all factors as variable. c. production choices are more limited than in the short run. d. production is always greater than zero. 25. Marginal cost, mathematically, is the slope of the: a. average total cost curve. b. average variable cost curve. c. average fixed cost curve. d. total cost curve.
21. Which of the following is not true? a. Marginal cost intersects average variable cost at its minimum point. b. Marginal cost intersects average total cost at its minimum point. c. Marginal cost intersects average fixed cost at its minimum point. d. Average fixed cost intersects average variable cost at its minimum point. 22. If a consumer moves upward along an indifference curve, his or her total utility: a. remains constant. b. first decreases, then increases. c. increases. d. first increases, then decreases. 23. Jill Smith, a careful maximizer of utility, consumes only two goods, peanut butter and ice cream. She had just achieved the utility-maximizing solution in her consumption of the two goods when the price of peanut butter rose. As she adjusts to this event, she will consume: a. more peanut butter and more ice cream. b. less peanut butter and less ice cream. c. more peanut butter and less ice cream. d. less peanut butter and more ice cream. 24. In the long run: a. the firm considers all factors as fixed. b. the firm considers all factors as variable. c. production choices are more limited than in the short run. d. production is always greater than zero. 25. Marginal cost, mathematically, is the slope of the: a. average total cost curve. b. average variable cost curve. c. average fixed cost curve. d. total cost curve.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Transcribed Image Text:a. marginal factor of production.
b. fixed factor of production.
c. incremental factor of production.
d. variable factor of production.
21. Which of the following is not true?
a. Marginal cost intersects average variable cost at its minimum point.
b. Marginal cost intersects average total cost at its minimum point.
c. Marginal cost intersects average fixed cost at its minimum point.
d. Average fixed cost intersects average variable cost at its minimum point.
22. If a consumer moves upward along an indifference curve, his or her total utility:
a. remains constant.
b. first decreases, then increases.
c. increases.
d. first increases, then decreases.
23. Jill Smith, a careful maximizer of utility, consumes only two goods, peanut butter and ice
cream. She had just achieved the utility-maximizing solution in her consumption of the two
goods when the price of peanut butter rose. As she adjusts to this event, she will consume:
a. more peanut butter and more ice cream.
b. less peanut butter and less ice cream.
c. more peanut butter and less ice cream.
d. less peanut butter and more ice cream.
24. In the long run:
a. the firm considers all factors as fixed.
b. the firm considers all factors as variable.
c. production choices are more limited than in the short run.
d. production is always greater than zero.
25. Marginal cost, mathematically, is the slope of the:
a. average total cost curve.
b. average variable cost curve.
c. average fixed cost curve.
d. total cost curve.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education