A firm's short-run average cost is defined as
a. the ratio of total output to short-run total cost.
b. the ratio of short-run total cost to total output.
c. the additional cost of producing one more unit of output while some input is fixed.
d. the additional cost of producing one more unit of output while all inputs are fixed.
b
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If an alternative provides a benefit of $8 to an individual at a cost of $6, the net benefits of the alternative equal:
A) $0.75. B) $48. C) $2. D) $14.
How do the price and quantity of a monopoly compare to that of a perfectly competitive industry?
What will be an ideal response?
A hospital receives a large donation and wants to use the funds to buy a new CT scanner. What is included in the opportunity cost of the new CT scanner?
a. There is no opportunity cost because the money was a gift. b. The foregone benefits of a new CT scanner if the funds are diverted to its purchase. c. The cost of the same CT scanner last year. d. The remaining depreciation expense on the CT scanner the hospital is replacing
The purchase by a foreign government of an airplane produced in the United States is included in U.S
A) consumption expenditures. B) investment expenditures. C) government purchases. D) net exports.