Which of the following is correct?
A. In the short run, if a firm chooses to produce no output (i.e. shut down) its total costs of production will equal its total fixed costs.
B. If a firm decides to shut down, its short-run total costs will equal 0
C. As a firm increases output in the short run, the change in total costs is equal to the change in total variable costs.
D. A firm minimizes its total costs of production when average variable cost is minimized. Reset Selection
Answer: C. As a firm increases output in the short run, the change in total costs is equal to the change in total variable costs.
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Most economists agree that while there are a seemingly endless number of ways to promote economic development:
A. there are just as many ways to measure effectiveness. B. there are few ways to measure their effectiveness. C. there is no way to determine which ways are the best. D. there is no need to measure effectiveness.
A restaurant offers an "all you can eat" meal for $9 . Tyrone has eaten three servings and is trying to decide whether or not to go back for a fourth. The economic way of thinking suggests that Tyrone should go back for the fourth serving if and only if
a. his marginal benefit of the additional serving is greater than zero. b. his marginal benefit of the additional serving is at least $3. c. his marginal benefit of the additional serving is $9 or more. d. his total value from the meal exceeds $9.
During a recession, the actual rate of unemployment will be
What will be an ideal response?
At the most profitable level of production, a firm's marginal cost will be _____ the market price.
(A) Set by (B) Less than (C) Equal to (D) Greater than