Author Question: If the demand curve facing the Acme Awl Company is tangent to its average total cost curve, all of ... (Read 142 times)

luminitza · **on:** Jun 30, 2018

If the demand curve facing the Acme Awl Company is tangent to its average total cost curve, all of the following statements are true except one. Which is the exception?
a. Economic profit is zero.
b. A normal profit exists.
c. Marginal cost must exceed marginal revenue.
d. Acme has excess capacity.
e. Firms have no incentive to enter or leave this industry.

Question 2

If a citizen decides he has had enough of big government and launches a personal campaign to expose big spenders in Congress,
a. he is likely to have his taxes reduced dramatically
b. his taxes are not likely to fall very much
c. he will be thrown in jail
d. he is likely to get elected by other voters
e. he will get the support of many special-interest groups