From the list on your right select the letter that contains the word, phrase, name, etc that best matches the word, phrase, name, etc listed on the left. i, =ATC . AVE AQ AQ 2. At the point where a downward sloping marginal cost (MC) curve turns upward 3. Marginal cost (MC) is less than average variable cost (AVC) 4. MC is falling v Average variable cost (AVC) is falling 5. Economies of scale Never U-shaped 6. A company The introduction of the moving assembly line experiencing by Henry Ford dropped the assembly time for diseconomies a single vehicle from 12 hours to about 90 of scale minutes enabling the company to producemore cars/day. Mass production drove the cost of each vehicle, making vehicle ownershipp a reality for more people. o Normal profit - Diminishing Marginal Returns sets in o Long-run % is rising, where Q =total output and L = labor or variable input o The long-run average cost curve is rising 9. The law of diminishing marginal returns doesn't hold because all inputs are variable Average fixed cost (AFQC) Total Revenue - (Explicit cost + Implicit cost) = 0 Marginal Cost (MC) 10. Total output is declining with each additional worker %