The vertical distance between the average total cost and average variable cost curves falls as output rises.
Answer the following statement true (T) or false (F)
True
Since average total cost equals the sum of average variable costs and average fixed costs and since average fixed cost falls as output rises, this statement is true.
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To determine total cost, the business owner must know
A. input quantity and output price. B. output quantity and output price. C. output quantity and input price. D. input quantity and input price.
When the amount of output is such that marginal social benefit exceeds marginal social cost, then to reach the efficient quantity
A) production should be increased. B) production should be decreased. C) production should remain constant. D) More information is needed to determine if production should be increased, decreased, or not changed.
A horizontal supply curve of labor implies that
a. lower wages are required to attract more employees b. higher wages are required to attract more employees c. MPP is constant d. any quantity of workers can be hired at the same wage e. the total labor cost curve is horizontal
By the time a drug enters the clinical trial phase of testing on humans,:
a. safety and effectiveness are no longer major concerns. b. its approval is virtually assured. c. the only step left in the process is testing to see if the drug accomplishes its intended purpose. d. on average, five years of the overall patent life have already expired. e. most of the investment in research and development has already been made