Author Question: Once marginal cost rises above the average cost, a. Average costs will increase b. Average costs ... (Read 51 times)

Brittanyd9008 · **on:** Jul 1, 2018

Once marginal cost rises above the average cost,
a. Average costs will increase
b. Average costs will decrease
c. Average costs will stay the same
d. None of the above

Question 2

A study of expenditures on food in cities resulting in the following equation: Log E = 0.693 Log Y + 0.224 Log N where E is Food Expenditures; Y is total expenditures on goods and services; and N is the size of the family. This evidence implies:
a. that as total expenditures on goods and services rises, food expenditures falls.
b. that a one-percent increase in family size increases food expenditures .693.
c. that a one-percent increase in family size increases food expenditures .224.
d. that a one-percent increase in total expenditures increases food expenditures 1.
e. that as family size increases, food expenditures go down.