Average fixed costs
A) are always rising with increases in production
B) are dependent on marginal costs.
C) are dependent on average variable costs.
D) are always falling with increases in production.
D
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The elements of an effective legal system include ________
A) strict limits on the ability of judges to interpret law B) a temperate climate C) a large body of legislators D) an adequate supply of lawyers
The model of perfect competition and the model of monopolistic competition differ in that
A) perfect competition assumes many buyers and sellers while monopolistic competition assumes many buyers but few sellers. B) perfect competition assumes easy entry of new firms while there are more significant barriers to entry in monopolistic competition. C) perfect competition assumes firms make zero profits in the long run and monopolistic competition assumes firms make positive profits. D) perfect competition assumes the product is homogeneous and monopolistic competition assumes the product is differentiated.
One reason why financial intermediaries are beneficial is that
a. they can predict the pattern of the outflow of funds b. they earn a profit c. there are a variety of financial intermediaries d. they reduce the risk to depositors by spreading loans among different borrowers e. they charge high interest rates on funds they lend to depositors
Greg spends his entire budget on two goods: he plays video games at the mall arcade and he buys pizza. He discovers that his MU/P of video games is lower than his MU/P of pizza. From this, we know that he would be
a. happier eating less pizza and playing fewer video games b. happier eating less pizza and playing more video games c. happier eating more pizza and playing fewer video games d. indifferent to which selection he makes e. less happy if he made any change because he has obviously bought the quantities that maximize his total utility