Average variable cost is
a. the change in cost as output decreases
b. the change in cost as output increases
c. TC / quantity of output
d. TVC / quantity of output
e. AFC + AVC
D
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Government purchases include spending on ________.
A. government purchases of final goods only B. government purchases of final goods, government salaries, and transfer payments C. government salaries only D. government purchases of final goods and government salaries
Suppose Germany's economy is experiencing full employment. This means that, in Germany,
A) the unemployment rate is equal to zero. B) real GDP is equal to potential GDP. C) real GDP is greater than potential GDP. D) potential GDP is greater than real GDP. E) real GDP equals nominal GDP.
According to the graph shown, if the market goes from equilibrium to having its price set at $10 then:
A. producer surplus will change from (B + C + D + E) to D only. B. producer surplus will change from (D + E) to (D + B). C. producer surplus will change from (D + E) to (D + E + B + C). D. producer surplus will change from (D + B) to (D + E).
What is the shape of the long-run supply curve in an increasing-cost industry?
A. inverted U-shape B. downward sloping C. upward sloping D. horizontal