Average fixed cost is defined as:
A. total variable cost divided by quantity.
B. quantity divided by total variable cost.
C. the change in total variable cost divided by the change in quantity.
D. total fixed cost divided by quantity.
Answer: D
You might also like to view...
Suppose that the current price level is 110, real GDP is $100 billion, and long-run aggregate supply is $95 billion. We can conclude that
A) the price level will fall and input prices will rise until real GDP pulls long-run aggregate supply up to $100 billion. B) aggregate demand will increase until both short-run and long-run aggregate supply equal $100 billion. C) the price level will fall until long-run aggregate supply shifts to $100 billion. D) input prices will rise until real GDP is $95 billion.
Suppose a bank has $100 million in checking account deposits with no excess reserves and the required reserve ratio is 10 percent. If the Federal Reserve reduces the required reserve ratio to 4 percent, then the bank can make a maximum loan of
A) $0. B) $4 million. C) $6 million. D) $10 million.
In bargaining between a bureau and the legislature over a budget, the legislature decides to purchase a certain amount of output at certain price and negotiates both simultaneously. This gives the bureau the opportunity to _____
a. minimize their effort b. extract all the legislature's consumer surplus from the bureau's output c. maximize the bureau's profits d. maximize the budget's producer surplus by extracting from the legislature large rents
When people like yourself hold money in the event that a good opportunity may arise, such as the opportunity to purchase high interest-bearing assets, economists classify this money as satisfying your
a. precautionary motive b. transactions motive c. speculative motive d. liquidity motive e. investment motive