- CFA Exams
- CFA Level I Exam
- Topic 2. Economics
- Learning Module 8. Topics in Demand and Supply Analysis
- Subject 6. Marginal Revenue, Marginal Cost and Profit Maximization
CFA Practice Question
At levels of output where the firm's short-run average cost curve is increasing, ______
A. the marginal cost curve is above the short-run average cost curve.
B. the marginal cost curve is below the short-run average cost curve.
C. the marginal cost curve may be above or below the short-run average cost curve.
Explanation: At levels of output greater than the minimum of the short-run average cost curve, the marginal cost curve is above the short-run average cost curve.
User Contributed Comments 0
You need to log in first to add your comment.