12. Suppose the marginal cost curve in the short run first decreases, then reach
ID: 1241903 • Letter: 1
Question
12. Suppose the marginal cost curve in the short run first decreases, then reaches a minimum, and then increases. If we are at an output where marginal cost is decreasing, then:
A. marginal product must be increasing.
B. average variable cost must be decreasing.
C. average total cost must be increasing.
D. marginal product must be increasing and average variable cost must be decreasing.
13. In the short run, as output gets larger and larger:
A. fixed cost gets smaller.
B. the average variable cost curve gets closer and closer to the average total cost curve.
C. marginal cost gets smaller.
D. average total cost decreases after the point of diminishing returns.
14. The long run refers to the period of time for which:
A. a fixed input exists.
B. all inputs are variable.
C. marginal costs are decreasing.
D. diminishing returns causes marginal cost to increase
17. Marginal cost ________ over the range of increasing marginal returns and ________ over the range of diminishing marginal returns.
A. increases; falls
B. falls; increases
C. is constant; rises
D. increases; is constant
18. Average total cost is:
A. the change in cost divided by the change in output.
B. total cost divided by output.
C. the change in output divided by the change in costs.
D. total cost times output.
19. The marginal cost curve intersects the average variable cost curve at:
A. its lowest point.
B. its maximum.
C. its endpoint.
D. no point; the curves don't intersect.
Explanation / Answer
D C B C D A
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