A firm's fixed cost
a. does not vary with output.
b. does not change between the short run and the long run.
c. is generally a higher percentage of its total cost at high output quantities than at low output quantities.
d. All of the above are true.
a
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In the monetary small open-economy model with a flexible exchange rate, an increase in the foreign price level has which impact on domestic money demand?
A) It increases it. B) It decreases it. C) It has no impact. D) It depends.
Which of the following will most likely occur during the recovery phase of a business cycle?
a. Real GDP rises, and unemployment falls. b. Real GDP declines, and inflation rises. c. Interest rates rise, and the number of business failures rise. d. Inflation rises, and employment falls.
Growth in total factor productivity equals the _____
a. sum of resource growth and economic growth b. ratio of total output to total input c. ratio of total input to total output d. percentage change in per capita real GDP e. percentage change in output minus the percentage change in resources
(Advanced analysis) Suppose that the linear equation for consumption in a hypothetical economy is C = 50 + 0.9 Y. Also suppose that income (Y) is $400. Determine the following: (a) MPC; (b) MPS; (c) level of consumption; (d) APC; (e) APS.
What will be an ideal response?