Q3 - The short-run average total cost curve is U-shaped because average fixed costs ________ and average variable costs ________ eventually as quantity produced increases.

1. Increase; increase.

2.Increase; decrease.

3. Decrease; increase.

4. Decrease; decrease.

Q4 - The Latin phrase ceteris paribus means that when a relationship between two variables is being studied,

1. Both Are Treated As Unpredictable.

2. Neither Of Those Two Variables Is Allowed To Change

3. All Other Variables Are Held Fixed.

4. We recognize that some factors are unknown