LS
Laura Salinas
Answers (2)
LS
Answered
A monopsonist faces an upsloping supply curve of labor, but it could face a horizontal demand curve for its product in the output market.
On May 09, 2024
True
LS
Answered
Describe the relationship between average variable cost and average total cost. How are the general shapes of the AVC and ATC curves related?
On May 06, 2024
ATC = AVC + AFC, so the vertical distance between the AVC and ATC curves is the value of AFC for that level of output. Both AVC and ATC are typically U-shaped. The vertical distance between the two curves, however, is steadily declining as output increases because AFC is steadily declining.