If average fixed cost is $2 and average variable cost is $3, total cost is $5.
Answer the following statement true (T) or false (F)
False
Total cost equals the sum of variable and fixed costs, not the sum of average variable costs and average fixed costs.
You might also like to view...
Which of the following is associated with the problem of hyperinflation? a. Money is in short supply
b. The value of money rises dramatically. c. The government runs out of money. d. People look for alternatives to using money. e. People start to hold on to money for long periods of time.
In a closed economy that does not have international trade, the spending multiplier equals _____
a. 1/MPS b. 1/MPC c. 1/(MPC-1) d. 1/(1-MPS) e. 1/(1+MPS)
A trade barrier whereby foreign firms agree to limit the quantity of exports to a particular country is called a:
A) quota. B) tariff. C) nontariff barrier. D) voluntary export restriction.
Which of the following is a land resource?
A. A farmer. B. An oil drilling rig. C. A machine for detecting earthquakes. D. Natural gas.