Average fixed cost is defined as:
A. total variable cost divided by quantity.
B. quantity divided by total variable cost.
C. the change in total variable cost divided by the change in quantity.
D. total fixed cost divided by quantity.
Answer: D
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The analysis of economic outcomes before and after some economic variable is changed is referred to as:
A) cardinal research. B) comparative statics. C) Pareto analysis. D) marginal study.
Marginal utility
A) characterizes things of little use. B) is the additional utility derived from the last unit of a good consumed. C) is an implication of the law of demand. D) is always negative when total utility is positive and positive when total utility is negative.
One of the weaknesses in pursuing the objective of profit maximization is that it ignores
A) the timing of cash flows. B) the time-value of money concept. C) the riskiness of cash flows. D) All of the above
Which retail operation would have the lowest costs per book sold?
a. a small independent bookstore b. a large retail bookstore chain c. an Internet seller of books d. All would have the same costs.