When does a firm's average variable cost exceed the average total cost?
A. never
B. when the average variable cost is at its minimum
C. when the average fixed cost is at its minimum
D. when the average total cost equals the average fixed cost
Answer: A
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Productivity growth in the U.S. averaged approximately 3 percent per year between 1947 and 1973; it has averaged approximately 5 percent annually since then
a. True b. False Indicate whether the statement is true or false
The output level at which a firm's long-run average total cost is minimized is known as its
a. profit-maximizing output level b. long-run marginal cost c. minimum efficient scale d. revenue maximization level e. equilibrium cost structure
The statement "saccharine causes cancer" is not a theory; it is a hypothesis
a. True b. False Indicate whether the statement is true or false
According to the quantity theory of money, if an economy produces 5,000 units of output, its money supply equals $40,000 and the velocity of money equals one, then the price level will equal:
A. $0.13. B. $1.25. C. $8. D. $200.