Answer to Question #52920 in Microeconomics for Yana

Question

Which of the following is true if the total variable cost curve is rising?
a. Average fixed cost is increasing.
b. Marginal cost is decreasing.
c. Marginal cost is increasing.
d. Average fixed cost is constant.

What is the shape of the average fixed cost curve for a firm in the short run?
a. U - shaped.
b. A curve that constantly increases as output expands and eventually approaches infinity at
high rates of output.
c. A vertical line.
d. A curve that declines as output expands and approaches the horizontal - axis when output is
large.

Answer 1

Which of the following is true if the total variable cost curve is rising?
a. Average fixed cost is increasing.
b. Marginal cost is decreasing.
c. Marginal cost is increasing.
d. Average fixed cost is constant.
Answer – C

What is the shape of the average fixed cost curve for a firm in the short run?
a. U - shaped.
b. A curve that constantly increases as output expands and eventually
approaches infinity at
high rates of output.
c. A vertical line.
d. A curve that declines as output expands and approaches the
horizontal - axis when output is
large.
Answer - D