On a graph of production costs, the vertical distance between the fixed cost curve and the total cost curve at a specific quantity represents
a. variable cost
b. average variable cost
c. average total cost
d. average fixed cost
e. marginal cost
A
You might also like to view...
The "law of demand" is illustrated by a
A) rightward shift of the demand curve. B) leftward shift of the demand curve. C) movement along the demand curve. D) Both answers A and B are correct.
If there is an increase in the price of the final good that an industry produces, the labor demand curve in the industry is likely to:
A) shift to the left. B) shift to the right. C) become vertical. D) become horizontal.
________ are costs that do not require a monetary payment.
A. Implicit costs B. Explicit costs C. Accounting costs D. All opportunity costs
What differentiates a savings deposit from a small-denomination certificate of deposit (CD)?
A. A savings deposit cannot be withdrawn before its maturity date without incurring a penalty; funds in a CD are available at any time with no interest penalty. B. A CD has a fixed maturity date; a savings deposit can be withdrawn at any time. C. All depository institutions accept savings deposits, whereas only a thrift institution can issue a CD. D. Only a savings deposit is a time deposit.