Which statement is true? Group of answer choicesMarginal cost intersects the maximum of AVC from below.Marginal cost intersects the minimum of AVC from below.Marginal cost intersects the minimum of AFC from below.The difference between AVC and ATC is AFC for every level of output.b and d are both true.

A perfectly competitive firm will maximize profits at the output level where which of the following is true?Group of answer choicesMarginal cost is equal to marginal revenueMarginal cost is equal to total revenueAverage cost is equal to marginal revenueAverage total cost is equal to average revenue

Which of the following is not an example of a rational decision?Group of answer choicesMarginal costs are greater than the marginal benefitMarginal benefits are greater than the marginal costMarginal costs are less than the marginal benefitsMarginal benefits are equal to the marginal cost

Analyze if the following statements are True or False. Justify your answer.(a) “The difference between the average total cost and the average variable cost is con-stant and equal to the fixed cost for any level of quantity.”(b) “If a production function exhibits increasing return to scale, the average variablecost is increasing and the marginal cost is below the average variable cost.”(c) “The point at which the marginal cost intersects the average variable cost representsthe point at which the average fixed cost is at its minimum.”

Which of the following equations is correct?Group of answer choicesAVC − ATC = AFCAVC + ATC = AFCAFC + AVC = ATCATC + AVC = AFC

A profit-maximizing monopoly will produce where which of the following is true? [Select all answers that are true]Group of answer choicesMarginal revenue is less than the priceMarginal revenue is equal to the marginal costMarginal revenue is positive