Suppose that the marginal cost of producing a pound of cereal is $2, irrespective of the level of output, but there are also some fixed costs of production. Which of the following statements iscorrect?O The total cost curve is an upward-sloping straight line through the originO The average cost curve is U-shapedThe marginal cost curve is a horizontal straight lineO The marginal cost curve intersects the average cost curve at its minimum point

Marginal cost is in addition to total cost because of producing one more unit of output. Average…

Suppose that the marginal cost of producing a pound of cereal is $2, irrespective of the level of output, but there are also some fixed costs of production. Which of the following statements is correct? The total cost curve is an upward-sloping straight line through the origin O The average cost curve is U-shaped The marginal cost curve is a horizontal straight line O The marginal cost curve intersects the average cost curve at its minimum point

Suppose that the marginal cost of producing a pound of cereal is $2, irrespective of the level of output, but there are also some fixed costs of production. Which of the following statements is correct? The total cost curve is an upward-sloping straight line through the origin O The average cost curve is U-shaped The marginal cost curve is a horizontal straight line O The marginal cost curve intersects the average cost curve at its minimum point

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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