Author Question: As illustrated in the above figure, after 40 gallons are produced each hour at Ike's Ice Cream ... (Read 135 times)

Yi-Chen · **on:** Jun 29, 2018

As illustrated in the above figure, after 40 gallons are produced each hour at Ike's Ice Cream Kitchen, the AVC curve starts to slope upward. The AVC starts to slope upward because the

A) MC curve slopes upward.
B) MC exceeds the AVC.
C) ATC curve has not yet reached its minimum.
D) None of the above answers is correct.

Question 2

Insurance companies

A) pool risk and thereby lower people's utility.
B) can earn a profit only if people are risk neutral.
C) can increase risk averse people's utility.
D) try to shift their customers' utility of wealth curves downward.