Which one of the following statements is FALSE?
A) TC = TFC + TVC
B) ATC = AFC + AVC
C) AFC = TFC divided by Q
D) MC = TC divided by Q
Answer: D
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The self-correcting property of the economy means that output gaps are eventually eliminated by:
A. increasing or decreasing potential output. B. government policy. C. decreasing inflation only. D. increasing or decreasing inflation.
Solow's growth model improved upon the Harrod-Domar results by
a. incorporating technological change into the model b. making a economic growth a reasonable outcome rather than one dictated by specialcircumstances c. assuming that GDP would fluctuate, rather than grow steadily d. removing investment from the model e. none of the above
Using the market marginal revenue, firms in a cartel or engaged in tacit collusion should set ________ equal to ________ to maximize profit.
A) marginal revenue; marginal cost B) marginal cost; average total cost C) marginal revenue; average total cost D) price; marginal revenue
A shift in the demand curve occurs when
a. suppliers place more goods on the market. b. the price of a good rises. c. consumers want to buy more or less than before at a given price. d. the price of the good falls.