Question

Say True or False.

(a) Average cost function AC = MC/x

(b) Total cost function C = ∫(MC) dx + k 

(c) Demand function = P = Rx 

(d) Elasticity of demand η_d = -p/x dx/dp

(e) Under market equilibrium x₀ = p₀

Answer 1

(a) False

(b) True

(c) False

(d) True

(e) False