Describe the relationship between marginal cost and average total ...

[Sufayan.ah]

Describe the relationship between marginal cost and average total cost.
 
  What will be an ideal response?

Question 2

Which of the following statements about the prisoner's dilemma is false?
 
  A) The prisoner's dilemma game can never reach a Nash equilibrium as long as players do not cooperate.
  B) The prisoner's dilemma in a one-shot game leads to a noncooperative, equilibrium outcome.
  C) The prisoner's dilemma in repeated games could lead to cooperation especially if there is some enforcement mechanism that punishes a player who does not cooperate.
  D) Players caught in a prisoner's dilemma act in selfish ways that lead to an equilibrium that is sub-optimal.

[BAOCHAU2803]

Answer to Question 1

If marginal cost for a given output is below average total cost, average total cost will decrease as output increases but if marginal cost is above average total cost, average total cost will increase as output increases. If marginal cost equals average total cost, average total cost is at its minimum value.

Answer to Question 2

A