Answer to Question #181941 in Macroeconomics for James

Question

QUESTION 16

At any level of output, the average variable cost curve:

1. Will be increasing.
2. Will be decreasing.
3. Will be constant.
4. Will be honest.
5. Will lie below the curve for average total cost.

QUESTION 17

The point of transition between where marginal cost is pulling average total cost down and where it is pulling it up:

1. Occurs at all levels of production.
2. Must occur at the maximum point of the average total cost curve.
3. Must occur at the minimum point of the average total cost curve.
4. Must not occur on the average total cost curve.
5. Needs help paying its bills. 

QUESTION 18

Fixed costs are often:

1. Simply errors made by accountants.
2. Invented by economists to overemphasize profits.
3. Mistaken for variable costs by seasoned businesspeople.
4. Variable costs.
5. Sunk costs that a firm cannot recoup.

QUESTION 19

This tells a firm whether it can earn profits given the current price in the market.

1. Average cost.
2. Variable cost.
3. Fixed cost.
4. Total cost.
5. No cost.

Answer 1

16.Will lie below the curve for average total cost.

17.Must occur at the minimum point of the average total cost curve.

18.Mistaken for variable costs by seasoned businesspeople.

19.Average cost