A firm is producing output less than the output associated with the minimum point on the firm’s short run average variable cost curve. At this level of output the firm uses its fixed capital input ________ and its variable labor input _________.
A) at the lowest average cost; at the lowest average cost
B) at the lowest average cost; at a higher than the lowest average cost
C) at a higher than the lowest average cost; at the lowest average cost
D) at a higher than the lowest average cost; at a higher than the lowest average cost
D) at a higher than the lowest average cost; at a higher than the lowest average cost
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Fluctuations in total output are the reverse image of fluctuations in
A) the inflation rate. B) the unemployment rate. C) gross domestic product. D) the GDP deflator.
If the demand for automobiles increases, which of the following would also experience an increase in demand?
a. automobile workers b. skateboards c. bicycle manufacturers d. ice cream e. financial analysts
Real estate values derive from the interaction of three different sectors in the economy. Which of the following sectors serves to allocate financial resources among households and firms requiring funds?
A. User market B. Capital market C. Government D. Property market
Explain the principal–agent problem in business
Please provide the best answer for the statement.