Refer to the above figure. The above figure shows the cost structure of a firm producing an information product. Which curve represents average fixed cost?

A. Curve 1
B. Curve 2
C. Curve 3
D. Any of the 3 could be AFC.


Answer: B

Economics

You might also like to view...

The money multiplier:

A. Is equal to the required reserve ratio times transactions deposits. B. Gets larger as the required reserve ratio increases. C. Is the reciprocal of the required reserve ratio. D. Represents the lending capacity of an individual bank.

Economics

The Leontief production function implies:

A. L-shaped isoquants. B. convex-shaped isoquants. C. straight-line isoquants. D. A positive MRTS.

Economics

Which of the following does not represent real GDP?

A) GDP in current dollars B) GDP in terms of goods C) GDP in base year dollars D) GDP in constant dollars

Economics

The main function of public-sector macroeconomic analysts is to

A. engage in theoretical research. B. find ways to increase corporate profits. C. forecast the developments in industries. D. assist in policymaking.

Economics