ECON 212- HW Production 2

Which of the following statements about the intersection of the average total cost and marginal cost curves is true? The intersection occurs at the minimum of the marginal cost curve. The intersection occurs at the minimum of the average total cost curve. The intersection occurs at the minimum of the average variable cost curve.

The intersection occurs at the minimum of the average total cost curve.

Which of the following statements about the intersection of the average variable cost and marginal cost curves is true? The intersection occurs at the minimum of the marginal cost curve. The intersection occurs at the minimum of the average total cost curve. The intersection occurs at the minimum of the average variable cost curve.

The intersection occurs at the minimum of the average variable cost curve.

In the long run: all inputs to production are variable. management will only be able to fire workers who are hourly, not salary. the firm must be in operation for at least 1 year. one output will be variable, but the others are fixed.

all inputs to production are variable.

If the level of output is less than the point at which the marginal cost curve and the average total cost curves intersect, it must be the case that: average total cost is constant. average total cost is decreasing. average total cost is increasing.

average total cost is decreasing

If the level of output is greater than the point at which the marginal cost curve and the average variable cost curves intersect, it must be the case that: average variable cost is constant. average variable cost is decreasing. average variable cost is increasing

average variable cost is increasing

The upward-sloping portion of the long-run average cost curve is a result of: economies of scale. constant returns to scale. diseconomies of scale. increasing marginal productivity.

diseconomies of scale

The downward-sloping portion of the long-run average cost curve is a result of: economies of scale. constant returns to scale. diseconomies of scale. decreasing marginal productivity.

economies of scale