The vertical distance between a firm's ATC and AVC curves represents:
A. AFC, which increases as output increases.
B. AFC, which decreases as output increases.
C. marginal costs, which decrease as output decreases.
D. marginal costs, which increase as output increases.
Answer: B
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If the marginal profit of the next unit is negative, the firm should produce more output in order to generate greater profit.
Answer the following statement true (T) or false (F)
The rule of 70 applies to a growing savings account but not to a growing economy
a. True b. False Indicate whether the statement is true or false
Which of the following is not a finding of Cox and Alm regarding the gap between rich and poor?
a. The gap shrinks if taxes are taken into account. b. The gap shrinks if consumption, rather than income, is compared. c. The gap shrinks if the number of people in the household is taken into account. d. The gap shrinks if the state of residence is taken into account.
Attempts to reduce income inequality may lead to greater income inequality.
Answer the following statement true (T) or false (F)