Average total cost equals
a. change in total costs divided by quantity produced.
b. change in total costs divided by change in quantity produced.
c. (fixed costs + variable costs) divided by quantity produced.
d. (fixed costs + variable costs) divided by change in quantity produced.
c
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Suppose that a nation has an absolute advantage in the production of all goods. In this instance, it
a. has no incentive to engage in international trade b. is producing at a point on its production possibilities frontier c. has no unemployment d. also has a comparative advantage in the production of those goods e. should specialize in producing the goods for which it has a lower opportunity cost than other countries
Suppose a firm wants to expand sales of its product into a foreign country. Should the firm license local firms in the foreign country to use its technologies to produce the product or should it set up a foreign operation that it owns and controls? What factors should the firm consider in making the decision? When identifying these factors, clearly explain how and why they push the decision toward one or the other of the two available choices.
What will be an ideal response?
If the government used the revenue from the excise tax on alcohol to fund research on alcoholism treatment programs, this would be an example of
A. a vertical equity tax. B. a benefits-received tax. C. an ability-to-pay tax. D. a user fee.
Owning a corporate bond entitles the bondholder to a portion of the firm's profits.
Answer the following statement true (T) or false (F)