If the average total cost of producing a good rises as a firm produces more of the good, then which of the following must be TRUE? ATC < MC AVC is increasing. AVC < MC. All of these. QUESTION 5 A firm that makes high-quality air filters can produce one unit at a total cost of $40. The total cost of producing two units is $60. At an output level of two units, the cost function exhibits economies of scale. rising marginal costs. increasing average costs. constant returns to scale. QUESTION 6 Which of the following are NOT characteristics of a competitive market? There are only one or two sellers. Buyers and sellers have complete information. All products are identical. There is freedom of entry and exit. QUESTION 7 If the demand curve is horizontal a rightward shift of the supply curve will lead to an increase in quantity supplied. an increase in price. a decrease in quantity demanded. a decrease in price. curve is horizontal, then how much will consumers spend, in total, on potatoes? $0
$50,000
$10,000
$500
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QUESTION 9 Which of the following is true about a perfect-price-discriminating monopoly? The marginal revenue curve is the same as the monopolist's marginal revenue curve. The marginal revenue curve varies for each consumer. The marginal revenue curve is the demand curve. The marginal revenue curve lies below the demand curve. QUESTION 10 With two-part pricing (a.k.a. two-part tariff), a firm charges a lump-sum fee that gives the consumer the right to buy a good or service. must have market power. must be able to limit resale. 4ll of these. QUESTION 11 faces a constant marginal cost of $1. The profit maximizing two-part tariff results in the firm selling 10 hours. 8 hours. 5 hours. 4.5 hours.