Consider an output beyond the minimum point of a firm’s short run average total cost curve. At this level of output the firm can use its _______ input at a lower average cost but only by using its _______ input at a higher average cost.
A) fixed capital; variable labor
B) variable labor; fixed capital
C) variable capital; fixed labor
D) fixed labor; variable capital
A) fixed capital; variable labor
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Since revenue increases with increases in price when demand is relatively inelastic, monopolists produce on the inelastic part of demand.
Answer the following statement true (T) or false (F)
In absolute value, the tax multiplier is greater than the government purchases multiplier
Indicate whether the statement is true or false
Which of the following would cause the demand for plumbers to decrease?
a. an increase in the productivity of plumbers b. a decline in the construction of housing c. a law that mandated higher wages for plumbers d. an increase in the number of plumbers who belong to a union
Data for the United States traced out an almost perfect Phillips curve for much of the
a. 1960s. b. 1970s. c. 1980s. d. 1990s.