The difference between the average total cost and the average fixed cost is the average variable cost
Indicate whether the statement is true or false
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The aggregate supply curve shows the total quantity of output that firms are willing and able to supply at a given inflation rate. This is the same relationship that is shown by the
A) aggregate expenditure curve. B) Phillips curve. C) MP curve. D) IS curve.
Gross fiscal expenditure in a country increased by $250,000 during a certain year. If the value of the simple spending multiplier is 3, then real GDP in this country will increase by: a. $175,000. b. $750,000. c. $45,000
d. $80,000.
A proposal to build a dam on a wild river may look like a good idea from the cost/benefit study done by the Army Corps of Engineers, but an analysis done by the Sierra Club might suggest that the dam would be a complete waste of money. Differences in cost/benefit studies such as this are expected because:
A. at least one side is definitely making mistakes in the analysis. B. items that do not have market prices, such as the environment, are very difficult to value objectively. C. at least one side is trying to deceive the public. D. cost/benefit studies describe what people want to happen, not what will actually happen.
If the marginal propensity to consume (MPC) is 0.75, the multiplier will be
A. 4. B. 1.25. C. 0.25. D. 75.