The gap between average total cost and average variable cost: a. ...

[B]

The gap between average total cost and average variable cost:
 a. is constant at all ranges of output.
  b. is high at high levels of production.
  c. declines as output expands.
  d. depends on the production technology.

Question 2

Which of the following statements concerning perfect competition is not true?
 a. Firms are price takers.
  b. The demand curve facing an individual firm is horizontal.
  c. A firm's demand curve is identical to its marginal revenue curve.
  d. The firms produce differentiated products.
  e. If a firm raises its price, it will lose all of its customers.

[miss.ashley]

Answer to Question 1

C

Answer to Question 2

d