The vertical distance between the average total cost and the average variable cost curves at any level of output will always be
A. variable cost.
B. fixed cost less variable cost.
C. average fixed cost.
D. total cost less fixed cost.
Answer: C
You might also like to view...
When the nominal price of a good increases over time, the real cost of buying the good
A) must increase. B) decreases because income also increases over time. C) does not change because income also increases over time. D) might increase, decrease, or stay the same depending on how much the CPI changed. E) might increase, decrease, or stay the same depending on how much income changed.
In the intermediate range of the aggregate supply curve, higher aggregate demand will increase:
a. both the price level and real GDP. b. real GDP without raising the price level. c. the price level without affecting real GDP. d. the price level but reduce real GDP.
In the above figure, the average fixed cost curve is curve
A) A. B) B. C) C. D) D.
When a shortage occurs in the market for a good, quantity
a. demanded exceeds quantity supplied and the market mechanism pushes the price up, which in turn encourages more production and less consumption. b. supplied exceeds quantity demanded and the price falls, which encourages more production and less consumption. c. demanded exceeds quantity supplied and the market mechanism pushes the price down, which encourages more production and less consumption. d. supplied exceeds quantity demanded and the price rises, which encourages more production and less consumption.