Which of the following statements about a firm's short-run variable costs is correct?
A) They increase as the level of output decreases.
B) They typically include the cost of workers' wages.
C) They include the costs of plant and equipment.
D) They are always a greater expense than are fixed costs.
Answer: B
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Monetary policy refers to:
A. policy directed toward increasing exports and reducing imports. B. the determination of the nation's money supply. C. government policies aimed at changing the underlying structure or institutions of the economy. D. decisions to determine the government's budget.
A fall in the price of flour, used in making cakes, is likely to:
A) increase the supply of cakes. B) decrease the quantity supplied of cakes. C) increase the quantity supplied of cakes. D) decrease the supply of cakes.
If the supply of labor ________, real wages rise and the amount of labor employed ________
A) increases; increases B) increases; decreases C) decreases; increases D) decreases; decreases
The recognition lag for fiscal policy is ________ it is for monetary policy
A) generally longer than B) generally shorter than C) roughly the same as D) There is not a recognition lag for fiscal policy.