32. A decrease in the price of a fixed factor of production decreases total cost and A. decreases marginal cost. B. leaves marginal cost unchanged. C. increases marginal cost. D. increases variable cost.
32. A decrease in the price of a fixed factor of production decreases total cost and A. decreases marginal cost. B. leaves marginal cost unchanged. C. increases marginal cost. D. increases variable cost.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
32. A decrease in the
A. decreases marginal cost.
B. leaves marginal cost unchanged.
C. increases marginal cost.
D. increases variable cost.
36. The marginal cost curve intersects the average fixed, average variable, and average total cost curves all at their minimum points.
True
False
38. Easy entry and exit ensure that perfectly competitive firms cannot make a long-run economic profit.
True
False
39. A perfectly competitive firm maximizes its profit by producing the level of output so that its average total cost equals the market price.
True
False
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