Author Question: If both the marginal cost and the average variable cost curves are U-shaped, which of the following ... (Read 97 times)

Starlight · **on:** Jun 30, 2018

If both the marginal cost and the average variable cost curves are U-shaped, which of the following is true over the range of output for which the average variable cost curve has a negative slope?
a. The marginal cost curve must have a negative slope.
b. The average total cost curve must have a negative slope.
c. The marginal cost curve is below the average variable cost curve.
d. both (b) and (c) are correct.

Question 2

In order to induce risk-averse people to invest in risky ventures, an additional sum of money is often paid to them along with the return.
a. True
b. False
Indicate whether the statement is true or false