At any level of output
A. average total cost will exceed average variable cost by the amount of the average fixed cost.
B. marginal cost will exceed average variable cost by the amount of the average fixed cost.
C. average variable cost will exceed average total cost in the short run.
D. average variable cost will exceed average fixed cost by the amount of the average total cost.
Answer: A
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National saving minus investment equals the current account
Indicate whether the statement is true or false
If demand is price inelastic, then
a. buyers do not respond much to a change in price. b. buyers respond substantially to a change in price, but the response is very slow. c. buyers do not alter their quantities demanded much in response to advertising, fads, or general changes in tastes. d. the demand curve is very flat.
Some data that at first might seem puzzling: The share of GDP devoted to investment was similar for the United States and South Korea from 1960-1991 . However, during these same years South Korea had a 6 percent growth rate of average annual income per person, while the United States had only a 2 percent growth rate. If the saving rates were the same, why were the growth rates so different?
Last year, you earned a nominal wage of $10 per hour and the price level was 120 . This year your nominal wage is $11 per hour, but you are unable to purchase the same amount of goods as last year. The price level this year must be
a. 135 b. 132 c. 125 d. 121