A fixed cost is:
A. any cost that a firm would incur even if output was zero.
B. any cost that increases proportionately with output.
C. associated with all inputs whose short-run supply is perfectly inelastic.
D. associated with any productive resource whose price is fixed.
Answer: A
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The Federal Open Market Committee is made up of all of the following, except
A. the board of governors. B. the chairman of the board of governors. C. the president of the United States. D. the president of the Federal Reserve Bank of New York.
If the elasticity of demand is 3, then a 10 percent increase in price will cause quantity demanded to fall by 3 percent.
Answer the following statement true (T) or false (F)
The generosity of the U.S.'s foreign aid after World War II was:
A. over $12 billion to 16 countries in an effort to help them rebuild. B. not entirely altruistic and had strategic political motives as well. C. unprecedented. D. All of these statements are true.
As output rises, average fixed cost
A. rises. B. falls. C. remains the same.