If the short-run cost curve of a firm is U-shaped; the marginal and average cost are equal where the?
A. average variable cost is minimum B. marginal cost is falling C. average cost is minimum D. average fixed cost is falling Correct Answer: Option C – average cost is minimum
The market structure in which there is interdependence of price-output policies is?
A. a pure monopoly B. an oligopoly C. a pure competition D. a monopolistic competition Correct Answer: Option B – an oligopoly
The only factor of production that plays an active role in the production process is?
A. land B. capital C. entrepreneur D. labour Correct Answer: Option C – entrepreneur
A rising short-run average cost is a result of?
A. economies of scale B. falling marginal costs C. diminishing returns D. rising fixed costs Correct Answer: Option C – diminishing returnsProducts
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