True or False:1. The average total cost curve is usually U-shaped.2. The declining average variable cost curve is primarily responsible for the falling segment of the average total cost curve.3. Diminishing marginal product first sets in at the minimum point of the average total cost curve.4. Diminishing marginal product causes the marginal cost curve to increase, eventually causing the average

True or False:
1. The average total cost curve is usually U-shaped.
2. The declining average variable cost curve is primarily responsible for the falling segment of the average total cost curve.
3. Diminishing marginal product first sets in at the minimum point of the average total cost curve.
4. Diminishing marginal product causes the marginal cost curve to increase, eventually causing the average variable cost and average total cost curves to rise.
5. MC is equal to AVC at the lowest point on the AVC curve, and it is equal to ATC at the lowest point on the ATC curve.
6. Over long enough time periods, firms can vary all of their productive inputs.
7. As we move along the LRATC, the factory size changes with the quantity of output.
8. A typical firm experiences economies of scale at low levels of output, constant returns to scale at higher levels of output, and diseconomies of scale at still higher levels of output.
9. Diseconomies of scale may exist because a firm can use mass production techniques or capture gains from further labor specialization not possible at lower levels of output.

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Related Book For answer-question

Exploring Economics

5th Edition

Authors: Robert L Sexton

ISBN: 9781439040249