Suppose that the marginal cost of producing a pound of cereal is $2, irrespective of the level of output, but there are also some fixed costs of production. Which of the following statements is correct?

Question

Accepted Answer

The marginal cost curve is a horizontal straight line.

Answer

The marginal cost curve intersects the average cost curve at its minimum point.

Answer

It is possible for the firm to make positive profits by charging a price of $1.50.

Answer

The total cost curve is an upward-sloping straight line through the origin.

Crowdly

Suppose that the marginal cost of producing a pound of cereal is $2, irrespectiv...

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