Variable costs
A) decrease with increasing output.
B) increase with decreasing output.
C) decrease with decreasing output.
D) might increase or decrease with increasing output.
C
You might also like to view...
The larger the four-firm concentration ratio, the ________ competition within an industry; the larger the Herfindahl-Hirschman Index, the ________ competition within an industry
A) more; more B) more; less C) less; more D) less; less E) The premise of the question is wrong because the four-firm concentration ratio applies only to markets with four firms in it and these markets are, by definition, not competitive.
A newspaper's classified ads are an example of a market
a. True b. False Indicate whether the statement is true or false
Assume that Greece has a comparative advantage in fish and Germany has a comparative advantage in cars. Also assume that Germany has an absolute advantage in both fish and cars. If these two countries specialize and trade so as to maximize the benefits of specialization and trade, then
a. the two countries' combined output of both goods will be higher than it would be in the absence of trade. b. Greece will produce more fish than it would produce in the absence of trade. c. Germany will produce more cars than it would produce in the absence of trade. d. All of the above are correct.
A French tourist spent $1,200 in the U.S this year. This transaction will lead to a(n)
A) increase in the GDP of France B) decrease in the GDP of France C) increase in the GDP of U.S. D) decrease in the GDP of U.S.