Marginal cost
A. measures how total cost changes when input prices change.
B. is less than average cost when average cost is decreasing.
C. measures how total cost changes when one more unit of output is produced.
D. both a and b
E. both b and c
Answer: E
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If the multiplier is 4, the marginal propensity to consume (MPC) must be
A) 0.5. B) 0.25. C) 0.75. D) 1.
When the money market is drawn with the value of money on the vertical axis, as the price level increases which of the following increases?
a. the quantity of money demanded and the quantity of money supplied b. the quantity of money demanded but not the quantity of money supplied c. the quantity of money supplied but not the quantity of money demanded d. neither the quantity of money supplied nor the quantity of money demanded
Subpart F income is passive and usually derived from operations in a tax-haven country.
a. true b. false
Most banks in the United States are owned by the government and operate as nonprofit institutions.
Answer the following statement true (T) or false (F)