Fixed costs are
a. costs that vary with output
b. equal marginal costs
c. costs that do not vary with output
d. equal to total costs
c
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The wage rate needed to generate enough earnings to reach the 4-person poverty line is often referred to as the "working wage"
Indicate whether the statement is true or false
By connecting the cost minimizing input bundles, we get the _______________
Fill in the blank(s) with the appropriate word(s).
Economies of scale exist when:
a. long-run average costs increase as output increases. b. long-run average costs are constant. c. short-run average costs increase. d. short-run average costs decline. e. long-run average costs decline as output increases.
Refer to the above graph showing the market for a product. Which of the following could not explain the indicated increase in equilibrium price from P 1 to P 2?
An increase in consumer incomes An increase in production costs An increase in the price of a substitute product A decrease in the price of a complementary product