In order to determine ____________, the firm's total costs must be divided by the quantity of its output.
a) average cost
b) fixed costs
c) diminishing marginal returns
d) variable cost
Answer: a) average cost
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An increase in the interest rate results in
A) a smaller opportunity cost of investment and so planned investment spending decreases. B) a greater opportunity cost of investment and so planned investment spending increases. C) a greater opportunity cost of investment and so planned investment spending decreases. D) a smaller opportunity cost of investment and so planned investment spending increases.
One of the strengths of a socialist economy, according to those who advocate such a system, is that government intervention will enable a more equitable distribution of income
a. True b. False Indicate whether the statement is true or false
In an increasing-cost industry, an increase in output will lead to
A. an downward shift in the MC curve. B. an increase in long-run per-unit costs. C. an downward shift in the ATC curve. D. a reduction in long-run per-unit costs.
A production function is a(n)
A. technological relationship. B. economic relationship. C. accounting relationship. D. cost relationship.