Average total cost is equal to
A) average fixed cost + average variable cost.
B) total cost ÷ quantity.
C) the change in total cost when output changes by one unit.
D) Answers A and B are correct.
E) Answers A and C are correct.
D
You might also like to view...
In a figure showing the average total cost curve and the average variable cost curve, the vertical distance between the two curves is equal to the
A) marginal cost. B) average fixed cost. C) total fixed cost. D) total variable cost. E) average marginal cost.
Intel hired a consultant who found that the value of marginal product of Intel's workers decreased as more workers were hired. Suppose Intel is a monopolistically competitive firm. Then the value of marginal product decreases because the
I. workers' marginal product of labor decreased as more workers were hired. II. marginal revenue of Intel's chips decreased as more chips were sold. A) I only B) II only C) Both I and II D) Neither I nor II
Factory workers who work the day shift earn less per hour than similarly-skilled factory workers who work the night shift. The difference in pay is attributed to
a. the marginal product of labor. b. the marginal product of capital. c. diminishing marginal returns. d. a compensating differential.
Shoeleather costs arise when higher inflation rates induce people to
a. spend more time looking for bargains. b. spend less time looking for bargains. c. hold more money. d. hold less money.