Question 1
If marginal cost is between average variable cost and average total cost, then
◦ both average variable cost and average total cost are increasing.
◦ both average variable cost and average total cost are decreasing.
◦ average variable cost is increasing and average total cost is decreasing.
◦ average variable cost is decreasing and average total cost is increasing.
Question 2
The marginal cost curve intersects the average variable cost curve at the ________ value of the average variable cost curve.
◦ maximum
◦ minimum
◦ zero
◦ average