In the short run, as output increases,
A. the difference between average total cost and average variable cost decreases.
B. marginal cost eventually decreases.
C. the difference between total cost and average variable cost decreases.
D. All of the above are correct.
Answer: A
You might also like to view...
The ability of an owner of a piece of property to deny its use to others is labeled ________
A) excludability B) rivalry C) non-rivalry D) lugubrious
If the economy is already producing its potential output, then, in the long run, any change in fiscal policy aimed at stimulating demand will simply increase the price level and have no impact on the output level in the economy
Indicate whether the statement is true or false
If good A is an inferior good, an increase in income leads to:
A. a decrease in the demand for good B. B. no change in the quantity demanded of good A. C. a decrease in the demand for good A. D. an increase in the demand for good A.
Which of the above diagrams illustrate(s) the effect of a decline in the price of irrigation equipment on the market for corn?
A. B and C B. D only C. C only D. B only