Fixed costs are best defined as:
a. costs that do not vary with output.
b. costs that are at a minimum when output approaches the firm's capacity.
c. the amount that one more unit of output adds to total costs.
d. costs that decline as output increases.
a
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Who benefits from a tariff on a good?
A) domestic consumers of the good B) foreign governments C) domestic producers of the good D) foreign producers of the good
Something that would cause the long-run aggregate supply curve to shift to the right would be:
A. technological advance. B. discovery of a new oil reserve. C. increase in the growth rate of the labor force. D. All of these would shift the long-run aggregate supply curve to the right.
The "broken window fallacy"
a. explains why inflation is so high. b. is a justification for the government to print more money. c. is illustrated when a government program is justified not on its merits but on the number of jobs it will create. d. has nothing to do with public policy.
At her current level of consumption, Wiebke's marginal utility from an additional pencil is 15 utils, and her marginal utility from an additional pen is 10 utils. This implies that Wiebke would be willing to give up at most ________ pencils for an additional pen.
A. 0.75 B. 0.66 C. 3 D. 1.5