The vertical distance between a firm's total cost (TC) and its total variable cost (TVC) curves
A) decreases as output decreases.
B) is equal to the average variable cost, AVC.
C) is equal to the total fixed cost, TFC.
D) is equal to the marginal cost, MC.
C
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The principle of comparative advantage helps explain trade between nations.
Answer the following statement true (T) or false (F)
One way DeBeers managed to maintain control over the diamond industry was to:
A. continue to be the sole diamond producer by buying all existing diamonds. B. create the illusion of no close substitutes through marketing. C. punish consumers who sought to store their wealth in diamonds. D. All of these statements are true.
The cornerstone of antitrust policy in the United States is generally considered to be the Sherman Antitrust Act of 1890.
Answer the following statement true (T) or false (F)
Average cost pricing for a natural monopoly will results in ______.
a. the socially efficient level of output b. a less than socially efficient level of output c. a greater than socially efficient level of output d. the firm suffering economic losses e. the firm earning economic profit