If the firm's fixed costs double while variable costs are unchanged, then
a. marginal cost more than doubles.
b. marginal cost doubles.
c. marginal cost remains unchanged.
d. average total cost remains unchanged.
e. average variable cost doubles.
C
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During the Great Depression, the rate of unemployment in the United States reached a high of
a. 10 percent. b. 15 percent. c. 20 percent. d. 25 percent.
Deciding what the distribution of income should be is an example of normative economics.
Answer the following statement true (T) or false (F)
What can a union do in order to raise the wages of its members?
What will be an ideal response?
Refer to the graph below. Assume that the economy is initially at full-employment equilibrium at point A. If there is cost-push inflation in this economy and the government pursues an expansionary fiscal policy, then in the long run the:
A. Price level will rise from P1 to P2 and real output will be Q2
B. Price level will rise from P1 to P3 and real output will be Q1
C. Price level will rise from P1 to P2 and real output will be Q3
D. Price level will be P1 and real output will be Q1