In the short run, suppose average total cost is a straight line ...

[Caiter2013]

In the short run, suppose average total cost is a straight line and marginal cost is positive and constant. Then, we know that fixed costs must:
 
  A) be declining with output.
  B) be positive.
  C) equal zero.
  D) We do not have enough information to answer this question.

Question 2

Refer to Figure 9.2. At price 0H and quantity Q1, the deadweight loss is
 
  A) DGC.
  B) BDC.
  C) BGC.
  D) 0FGQ1.
  E) none of the above

[tkempin]

Answer to Question 1

C

Answer to Question 2

C