Refer to Figure 11-5. Curve G approaches curve F because
A) marginal cost is above average variable costs.
B) fixed cost falls as capacity rises.
C) average fixed cost falls as output rises.
D) total cost falls as more and more is produced.
Ans: C) average fixed cost falls as output rises.
You might also like to view...
Plywood is used in the construction of houses. If the price of plywood rises, what happens to the supply of houses?
A) The supply increases so that the supply curve shifts rightward. B) The supply decreases so that the supply curve shifts leftward. C) The quantity supplied increases, but there is no shift in the supply curve. D) The quantity supplied decreases, but there is no shift in the supply curve. E) The quantity supplied decreases, and the supply curve shifts leftward.
Which of the following is true of the relationship between price and quantity supplied? a. Whatever the price level, quantity supplied is equal to quantity demanded. b. More is supplied at lower prices. c. As the price rises, consumers are willing to purchase more of the good supplied. d. Except for market-day supply, an increase in price generates an increase in quantity supplied
e. An increase in price leads to a decrease in quantity supplied.
Which of the following is an example of an explicit income transfer?
A. A Social Security pension paid to a retired factory worker. B. The paycheck received by a person who missed work last week because of vacation. C. The check received by a person currently employed by the postal service. D. A payment to a member of the U.S. Army who has recently been transferred to Germany.
Which of the following is an example of a nondurable good?
a. A Sport Utility Vehicle b. A Bag of Cookies c. A Dishwasher d. None of the above are examples of nondurable goods.