If the marginal cost curve is below the average variable cost curve, then
A) average variable cost is increasing.
B) marginal cost must be decreasing.
C) average variable cost could either be increasing or decreasing.
D) average variable cost is decreasing.
Question 2
A price maker is
A) a consumer who participates in an auction where she announces her willingness to pay for a product.
B) a firm that is able to sell any quantity at the highest possible price.
C) a person who actively seeks out the best price for a product that he or she wishes to buy.
D) a firm that has some control over the price of the product it sells.
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