11. Suppose a firms' average variable cost curve has the typical U-shaped form, if so, then the following is true: A) The average variable cost curve reaches a minimum point where it intersects the marginal cost curve. B) The firms' average product of labour curve must have an inverted U-shape. C) The firms' average product of labour curve reaches a maximum where the output of that labour is equal to the output where the average variable cost curve is minimized. D) If the marginal cost falls below the average variable cost curve, then the average variable cost curve is downward sloping. E) All of the above F) A & B G) A & C H) A & D I) A, B& D. J) None of the above.

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...
icon
Related questions
Question
11. Suppose a firms' average variable cost curve has the typical U-shaped form, if so, then the
following is true:
A) The average variable cost curve reaches a minimum point where it intersects the
marginal cost curve.
B) The firms' average product of labour curve must have an inverted U-shape.
C) The firms' average product of labour curve reaches a maximum where the output of that
labour is equal to the output where the average variable cost curve is minimized.<
D) If the marginal cost falls below the average variable cost curve, then the average
variable cost curve is downward sloping.
E) All of the above
F) A & B
G) A & C
H) A & D
I) A, B& Da
J) None of the above.
Transcribed Image Text:11. Suppose a firms' average variable cost curve has the typical U-shaped form, if so, then the following is true: A) The average variable cost curve reaches a minimum point where it intersects the marginal cost curve. B) The firms' average product of labour curve must have an inverted U-shape. C) The firms' average product of labour curve reaches a maximum where the output of that labour is equal to the output where the average variable cost curve is minimized.< D) If the marginal cost falls below the average variable cost curve, then the average variable cost curve is downward sloping. E) All of the above F) A & B G) A & C H) A & D I) A, B& Da J) None of the above.
Expert Solution
steps

Step by step

Solved in 4 steps

Blurred answer
Knowledge Booster
Marginal Product
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
Principles of Economics 2e
Principles of Economics 2e
Economics
ISBN:
9781947172364
Author:
Steven A. Greenlaw; David Shapiro
Publisher:
OpenStax
ECON MICRO
ECON MICRO
Economics
ISBN:
9781337000536
Author:
William A. McEachern
Publisher:
Cengage Learning
Exploring Economics
Exploring Economics
Economics
ISBN:
9781544336329
Author:
Robert L. Sexton
Publisher:
SAGE Publications, Inc
Essentials of Economics (MindTap Course List)
Essentials of Economics (MindTap Course List)
Economics
ISBN:
9781337091992
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Microeconomic Theory
Microeconomic Theory
Economics
ISBN:
9781337517942
Author:
NICHOLSON
Publisher:
Cengage