Suppose that the marginal cost of producing a pound of cereal is $2, irrespective of the level of output, but there are also some fixed costs of production. Which of the following statements is correct?

Question

Answer

The total cost curve is an upward-sloping straight line through the origin.

Answer

The marginal cost curve intersects the average cost curve at its minimum point.

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The marginal cost curve is a horizontal straight line.

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It is possible for the firm to make positive profits by charging a price of $1.50.

Crowdly

Suppose that the marginal cost of producing a pound of cereal is $2, irrespectiv...

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