The vertical distance between a firm's average total cost curve, ATC, and its average variable cost curve, AVC
A) decreases as output increases.
B) is equal to its marginal cost, MC.
C) is equal to its total fixed cost, TFC.
D) is equal to its average product.
A
You might also like to view...
The area above the supply curve and below the market price represents:
a. the consumer surplus b. the producer surplus. c. the deadweight loss of the producer. d. the deadweight loss of the consumer.
Government is unnecessary in a free enterprise economy such as the United States
a. True b. False Indicate whether the statement is true or false
Asset price bubbles are not sustainable because:
A. they do not reflect an increase in the real productive value of the asset. B. invariably the government steps in to burst the asset price bubble. C. investors eventually run out of assets with which to purchase the good. D. people realize that leverage really doesn't work mathematically.
Stagflation refers to a situation in which the economy is experiencing:
A. high economic growth and high inflation. B. low economic growth and high inflation. C. high economic growth and low inflation. D. low economic growth and low inflation.