Explain how it might be possible for the total variable cost function to be linear? Explain
What will be an ideal response?
The total variable cost function can be linear if marginal costs are constant at all levels of output.
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Economists mostly agree that the Great Depression was principally caused by factors that shifted short-run aggregate supply left
a. True b. False Indicate whether the statement is true or false
While the classical economists believed that both velocity and output are stable, Keynesians believe:
a. velocity and output are both variable. b. output is stable and velocity is variable. c. the same as the classical economists that both output and velocity are stable. d. velocity is stable and output is variable.
If the production of a product or service involves external or spillover benefits, then the government can improve efficiency in the market by:
A. imposing a corrective tax to correct for an overallocation of resources. B. providing a subsidy to correct for an underallocation of resources. C. imposing a corrective tax to correct for an underallocation of resources. D. providing a subsidy to correct for an overallocation of resources.
Businesses fail because:
A. entrepreneurship is present. B. they follow the principle of consumer sovereignty too closely. C. they earn excessive profits. D. the invisible hand determines that they are not producing something that is socially valuable.