Question: 1. The short-run marginal cost curve is shaped like the letter _and the short-run average cost curve is shaped like the letter _. 2. The

1. The short-run marginal cost curve is shaped like the letter _____and the short-run average cost curve is shaped like the letter _____.
2. The negatively sloped portion of the short-run marginal cost curve is explained by _____and the positively sloped portion is explained by_____.
3. Over the positively sloped portion of the short-run average-cost curve, the effect of _____dominates the effect of _____.
4. At the current level of output, the marginal cost of MP3 players exceeds the average cost. If you increase output, the average cost will _____ (increase/decrease).
5. If marginal cost equals average cost, we are at the minimum point of the _____cost curve.

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