The Minimum Points of the Average Variable Cost and Average

question 67

Multiple Choice

The minimum points of the average variable cost and average total cost curves occur where

• A) the marginal cost curve lies below the average variable cost and average total cost curves.
• B) the marginal cost curve intersects those curves.
• C) the average variable cost and average total cost curves intersect.
• D) the slope of total cost is the smallest.

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Definitions:

Price-Fixing Arrangement

An agreement between participants on the same side in a market to buy or sell a product, service, or commodity only at a fixed price, thereby manipulating market conditions.

Price Fixing

An illegal agreement among competitors to fix prices at a certain level rather than allowing them to be determined by free market forces.

Clayton Act

The Clayton Act is a U.S. antitrust law enacted in 1914, aimed at promoting competition and preventing monopolies.

Antitrust Laws

Legislation enforced to prevent monopolies and promote competition among businesses.