12. Her marginal utility of her fifth scented candle would be A. $4. B. $5. C. $

Question

12. Her marginal utility of her fifth scented candle would be A. $4. B. $5. C. $20. D. $26 E. $30. 13. In the short run, the ATC curve is A. always B. sometimes C. never above the AVC curve. 14. The law of diminishing marginal returns implies A. the more hours you spend studying economics the less you will know B. your understanding of economics will be increased by decreasing your marginal study time. C after a certain point, the more hours you spend studying economics per day, the less you added hour D, the more hours ars you spend studying economics per day, the more you will learn with each added hour. spend 15. The law of diminishing returns A. is completely invalid B. states that if units of a resource are added to a fixed proportion of other resources, eventually marginal output will decline. C. states that if any two resources are combined, production will fall. D. states that profit margins decline as output rises 16. As output increases, eventually A. economies of scale become larger than diseconomies of scale. B. diseconomies of scale become larger than economies of scale. C. economies of scale and diseconomies of scale both increase. D. economies of scale and diseconomies of scale both decrease. 17. Which statement is true? A. Going out of business is a short run option. B. Operating or shutting down are long run options. C. Going out of business or not going out of business are long run options.

Explanation / Answer

First question is answered below

13.

Correct option: always

Reason: Since TC > VC, this makes ATC > AVC always because AFC or FC can never be zero, making difference between ATC and AVC positive.

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