A firm's marginal cost equals the:
A)ratio of total cost to total quantity.
B)slope of the demand curve under perfect competition.
C)slope of the total product curve when the latter is at its maximum.
D)change in total cost divided by the change in total output.
E)slope of the supply curve.
The marginal fixed cost of a firm:
A)is a positive constant irrespective of output level.
B)declines as output is increased because a fixed numerator is divided by an ever-growing denominator.
C)generally increases as output is increased.
D)is equal to average variable cost and average total cost at their minimum points.
E)is always equal to zero and is therefore ignored by economists.
Which of the following reflects the correct relationship between average total cost (ATC) and marginal cost (MC)?
A)When MC > ATC; ATC is falling.
B)When ATC is minimum; ATC < MC.
C)When MC < ATC; ATC is falling.
D)When MC < ATC; ATC is constant.
E)When ATC < MC; MC is falling.
At its minimum point, the average-total-cost curve is intersected by the:
A)average fixed cost curve.
B)average variable cost curve.
C)total fixed cost curve.
D)total variable cost curve.
E)marginal cost curve.