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The marginal cost curve implies a a. set of output and input demands. b. choice of technology and a set of output demands. c. set of output demands and the output price. d. choice of technology and a set of input demands.

In perfect competition, the marginal revenue curve a. is always above the demand curve facing the firm. b. is always below the demand curve facing the firm. c. intersects the demand curve when marginal revenue is minimized. d. and the demand curve facing the firm are identical.

The law of diminishing marginal returns a. results in both the average total cost (ATC) and marginal cost (MC) curves being U-shaped. b. causes average fixed costs to decline continuously as output increases. c. results in the MC but not the ATC being U-shaped. d. causes the difference...