At a particular level of output, the difference between average total cost and average fixed cost is average variable cost.
Answer the following statement true (T) or false (F)
True
You might also like to view...
If a consumer borrows at an interest rate greater than the interest rate at which he or she can lend, then
A) banks cannot make a profit. B) the budget constraint has a kink at the endowment point. C) the consumer must be a lender. D) this makes no difference for consumer behavior.
If the economy is not operating at full-employment real GDP, classical economists prescribe a government policy of nonintervention
a. True b. False Indicate whether the statement is true or false
The social cost of production, in cases where negative externalities exist, is equal to the
a. sum of private and external costs minus social benefit b. sum of private and external costs c. sum of private cost and external cost minus social benefit d. sum of private cost and external cost e. current market price plus the external cost
According to the Hotelling Rule, the price of an exhaustible natural resource will
a) be very volatile b) rise at the rate of interest c) be too low and result in to being exploited too quickly d) rise to ensure that the resource never runs out. e) Always be at the backstop price where rival sources are economic