In the short run, TVC * is positive when output is zero. increases with increasing output. decreases when the firm is experiencing diminishing returns. decreases when the firm is experiencing...

In the short run, TVC *



is positive when output is zero.
increases with increasing output.
decreases when the firm is experiencing diminishing returns.
decreases when the firm is experiencing increasing returns.

The MC curve must be *



rising when TC is rising.
less than AFC when the average cost is rising.
greater than ATC when the average curve is rising.
falling when the ATC curve lies below the marginal curve.

Which of the following statements is correct? *



In order to maximize profits in the short run, a purely competitive firm should produce at the level where marginal cost is equal to price.
A purely competitive firm will produce in the short run, so long as total receipts are sufficient to cover its total fixed costs. 2
A purely competitive firm will always close down in the short run, whenever price is less than average total cost.
In the long-run, firms incur costs that are fixed and variable.