In the short run, a firm has two options: ________ a) Stay in business or go out
ID: 1232981 • Letter: I
Question
In the short run, a firm has two options: ________a) Stay in business or go out of business
b) Stay in business or shut down
c) Operate or go out of business
d) Operate or shut down
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
The marginal cost curve intersects_____ at its/their minimum point(s)
a) The ATC, but not the AVC
b) The AVC, but not the ATC
c) Both the ATC and the AVC
d) Neither the ATC nor the AVC
Statement 1: AVC can never be higher than ATC
Statement 2: AVC and marginal cost are equal at an out of one _____
a) Statement 1 is true, and statement 2 is false
b) Statement 2 is true, and statement 1 is false
c) Both statements are true
d) Both statements are false
Explanation / Answer
b) Stay in business or shut down b) Diseconomies of scale become larger than economies of scale c) Both the ATC and the AVC a) Statement 1 is true, and statement 2 is false