At all levels of production higher than the point where the marginal cost curve crosses the average variable cost curve, average variable cost:
Select one:
a. rises.
b. remains unaffected.
c. falls.
d. All of the above are possible depending on the shape of the marginal cost curve.
Which of the following statements is correct?
Select one:
a. If marginal cost is rising, then average total cost is rising.
b. If marginal cost is rising, then average variable cost is rising.
c. If average variable cost is rising, then marginal cost is minimized.
d. If average total cost is rising, then marginal cost is greater than average total cost.
In the long run, a firm that produces and sells computers gets to choose:
Select one:
a. how many workers to hire.
b. the size of its factories.
c. which short-run average-total-cost curve to use.
d. All of the above are correct.