Question

1.Classical economic thought believed in :

a.full employment

b.unemployment

c.great depression
2.When mc=ac what happens

Answer 1

Answer:1:a) Employment

Explanation:2:When MC is less than AC, AC falls with increase in the output, i.e. till 3 units of output. 2. When MC is equal to AC, i.e. when MC and AC curves intersect each other at point A, AC is constant and at its minimum point.