Consider a firm with fixed costs of production (F). Which FOUR of the followingstatements are correct regarding average cost (AC) and marginal cost (MC) of thefirm, as it varies output (Q)?Select one or more:a. If AC has a minimum point, then AC = MC at that pointb. When AC > MC, the MC curve is downward-sloping.С.When AC >MC, the AC curve is downward-sloping.d. The MC curve cannot be horizontal.e. At Q=0, average cost is equal to fixed costs.f. At Q=1, average costs and total costs are equalg. As Q becomes very large, AC becomes very smallO h. As Q becomes very small, AC becomes very large

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Consider a firm with fixed costs of production (F). Which FOUR of the following statements are correct regarding average cost (AC) and marginal cost (MC) of the firm, as it varies output (Q)? Select one or more: O a. If AC has a minimum point, then AC = MC at that point b. When AC > MC, the MC curve is downward-sloping. C. When AC >MC, the AC curve is downward-sloping. O d. The MC curve cannot be horizontal. e. At Q=0, average cost is equal to fixed costs. f. At Q=1, average costs and total costs are equal g. As Q becomes very large, AC becomes very small O h. As Q becomes very small, AC becomes very large

Consider a firm with fixed costs of production (F). Which FOUR of the following statements are correct regarding average cost (AC) and marginal cost (MC) of the firm, as it varies output (Q)? Select one or more: O a. If AC has a minimum point, then AC = MC at that point b. When AC > MC, the MC curve is downward-sloping. C. When AC >MC, the AC curve is downward-sloping. O d. The MC curve cannot be horizontal. e. At Q=0, average cost is equal to fixed costs. f. At Q=1, average costs and total costs are equal g. As Q becomes very large, AC becomes very small O h. As Q becomes very small, AC becomes very large

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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