Average variable and average total costs get farther apart as output decreases because ________ as output decreases.
A. total and total variable costs get farther apart
B. diminishing returns set in
C. marginal costs increase
D. average fixed costs increase
Answer: D
You might also like to view...
If an individual wins a multimillion dollar lottery and chooses to receive annual payments equaling the total prize, this person has a
A) relatively low discount rate. B) relatively high discount rate. C) discount rate of zero. D) It is impossible to tell.
When fixed costs are ignored because they are irrelevant to a business's production decision, they are called
a. explicit costs. b. implicit costs. c. sunk costs. d. opportunity costs.
Real business cycle theory suggests that changes in
A. technology and resources affect productivity, and thus the long-run growth of aggregate supply. B. monetary policy is the single most important cause of macroeconomic instability. C. the velocity of money is gradual and predictable and thus able to accommodate the long-run changes in nominal GDP. D. investment spending will have a direct and significant effect on aggregate demand.
The definition of human capital refers to
A. worker education and workers’ equipment. B. worker education and workers’ physical capital. C. workers’ equipment and workers’ physical capital. D. worker education and worker training.