If average variable cost is decreasing as output increases, then ...

[nramada]

If average variable cost is decreasing as output increases, then marginal cost is definitely
 
  A) decreasing as output increases.
  B) increasing as output increases.
  C) less than average variable cost.
  D) greater than average variable cost.

Question 2

The above figure shows a monopolistically competitive firm. The figure
 
  A) is only a short-run illustration because the firm is making an economic profit.
  B) could be either a short-run or long-run illustration because monopolistically competitive firms can make an economic profit in the long-run.
  C) is only a long-run illustration because the firm is making zero economic profit.
  D) is neither a short- nor a long-run illustration.

[enass]

Answer to Question 1

C

Answer to Question 2

A

[nramada]

Correct answers!

[enass]

Great! Please up vote