Which of the following relationships is NOT valid?
A) Rising marginal cost implies that average total cost is also rising.
B) When marginal cost is below average total cost, the latter is falling.
C) When marginal cost is above average variable cost, AVC is rising.
D) none of the above
Question 2
When government intervenes in a competitive market by imposing an effective price ceiling, we would expect the quantity supplied to ________ and the quantity demanded to ________.
A) fall; rise
B) fall; fall
C) rise; rise
D) rise; fall
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