Which of the following must be falling when the short run marginal cost is less than it, and rising when the short run marginal cost is greater than it?  Choose all answers that are correct.Group of answer choicesAverage variable costShort run average total costFixed costVariable cost

In the short run, if a firm's marginal physical product of labour is decreasing,a) the firm's output must also be decreasing.b) the firm's variable cost must be decreasing.c) the firm’s marginal cost must be increasing.d) the firm’s average variable cost must be decreasing

The short-run marginal and average variable cost curves for a competitive firm are given by MC = 2+2q and AVC = 2+q. The profit-maximizing level of output for a firm is 4 and its total fixed cost is $18. Which of the following must be true about the firm? Group of answer choices The firm is charging a price of $4 and covering its average variable cost, hence it should continue operating in the short-run. The firm is charging $10 and will remain in the industry in the short-run; but it is not covering its total costs and will consider leaving the industry in the long run. The firm is charging a price of $4 and making a short-run loss, hence it should shut down immediately. The firm is charging a price of $10 and making a zero profit, hence it should shut down eventually. The firm is charging a price of $10 and making a positive profit, hence it will remain in the industry in the long-run.

When Marginal cost and Average cost falls,Group of answer choicesthey fall at the same speed.Marginal cost falls faster than Average Cost.they do not depend on output.Average cost falls faster than Marginal cost.

If both the marginal and the average variable cost curves are U-shaped, at the point of minimum average variable cost the marginal cost must be ........... Question 1Select one:a.rising. b.equal to the average variable cost.c.falling.d.at its minimum.

Choose all answers that are correct:  the marginal cost is the slope of theGroup of answer choicesThe variable cost curveThe marginal product curveThe average product curveThe total cost curveThe average cost curve