Marginal cost is equal to average total cost when
A. average variable cost is falling.
B. average fixed cost is rising.
C. marginal cost is at its minimum.
D. average total cost is at its minimum.
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The minimum points of the average variable cost and average total cost curves occur where the
A. marginal cost curve lies below the average variable cost and average total cost curves.
B. marginal cost curve intersects those curves.
C. average variable cost and average total cost curves intersect.
D. slope of total cost is the smallest.
When a factory is operating in the short run,
A. it cannot alter variable costs.
B. total cost and variable cost are usually the same.
C. average fixed cost rises as output increases.
D. it cannot adjust the quantity of fixed inputs.
In the short run, a firm that produces and sells house paint can adjust
A. where to produce along its long-run average-total-cost curve.
B. the size of its factories.
C. how many workers to hire.
D. the location of its factory.
The most likely explanation for economies of scale is
A. coordination problems.
B. specialization of labor.
C. increasing marginal cost.
D. decreasing marginal cost.
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