As the level of output increases, what happens to the value of average fixed cost, and what happens to the difference between the value of average total cost and average variable cost?
What will be an ideal response?
As the level of output increases, the value of average fixed cost decreases. The same fixed cost is divided by a larger and larger output. The difference between average total cost and average variable cost is average fixed cost, so as is stated above, the value decreases.
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Jay owns a classic car he purchased for $50,000. At a car rally a knowledgeable classic car enthusiast offers him $75,000 for the car. Based on this information:
A. Jay's wealth is unchanged. B. Jay's saving this year has increased by $25,000. C. Jay has experienced a $25,000 capital gain. D. Jay's saving this year has decreased by $25,000.
Which of the following is not one of the general classifications of taxes?
A. Regressive. B. Progressive. C. Proportional. D. Gradual.
The total cost curve:
A. is always above the variable cost curve. B. is parallel to the variable cost curve. C. is the sum of the variable cost curve and fixed cost curve. D. All of these are true.
The more society consumes today
A) the more it consumes next year. B) the less it can produce today. C) the less society can consume in the future. D) the more capital goods society can produce in the future.