Average fixed cost is measured by
a. AVC + ATC
b. TFC/TC
c. AVC – ATC
d. TFC/Q
e. TC – VC
D
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Economics may be referred to as a(n) ________ science, meaning that data is looked at to see whether assertions are correct
A) empirical B) exact C) assumptive D) soft
An entrepreneur with current income of $200,000 believes that her future income will either fall to $100,000 or rise to $300,000 with equal probabilities. Her rate of time preference is exactly offset by the interest rate. In the first of two periods, she spends $178,000 and saves $22,000 for the second period. Her behavior illustrates
a) a marginal propensity to consume of .89 b) the permanent income hypothesis c) precautionary saving d) the bequest motive e) a borrowing constraint
The theory of efficient markets:
A. allows for higher than average returns if the investor takes higher than average risk. B. assumes people have equal luck. C. rules out high returns due to chance. D. says insider information makes markets less efficient.
Because marginal revenue product reflects productivity, decreases in productivity directly shift
A. input supply curves to the left. B. input supply curves to the right. C. input demand curves to the right. D. input demand curves to the left.