As output increases, average fixed costs
A) decrease.
B) initially decrease and then increase.
C) remain constant.
D) increase.
A) decrease.
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Over the past decade technological improvements that have lowered the cost of producing an automobile have increased
A) both the supply and the demand for automobiles. B) the supply but not the demand for automobiles. C) the demand but not the supply of automobiles. D) neither the supply nor the demand for automobiles.
If you compared the short-run demand and long-run demand for education at your college, you would almost certainly find that
a. the long-run demand curve was steeper than the short-run demand curve. b. a tuition increase would reduce enrollment more in the long run than in the short run. c. a reduction in tuition would increase enrollment in the short run but not in the long run. d. the short-run and long-run demand curves were identical.
Treasury Bonds are
a. both a store of value and a medium of exchange. b. a store of value, but not a medium of exchange c. a medium of exchange, but not a store of value. d. neither a store of value nor a medium of exchange.
Exhibit 2-2 Production possibilities curve
In Exhibit 2-2, the opportunity cost of coffee when moving from A to B is:
A. 2 million bushels of corn. B. 6 million bushels of corn. C. 8 million bushels of corn. D. 14 million bushels of corn.