Answer the following statement(s) true (T) or false (F)
1. Inputs owned by the firm are included when calculating its costs.
2. If marginal cost rises when output is increased, then the average cost of production is also rising.
3. When labor is the only variable input in the short run, average variable cost equals the wage rate times the average product of labor.
4. The marginal cost curve crosses average variable cost at the bottom of the average cost U.
5. Average Variable Cost can always be expressed as the ratio of the price of labor to the Average Product of Labor.
1. True
2. False
3. False
4. True
5, False
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The fact that output gaps will not last indefinitely, but will be closed by rising or falling inflation is the economy's:
A. income-expenditure multiplier. B. self-correcting property. C. short-run equilibrium property. D. long-run equilibrium property.
Economic efficiency is indicated by
A) P = AVC. B) MR = MC. C) P = MR. D) P = MC.
A capital inflow occurs when:
A. money saved domestically is invested in another country. B. money saved in another country finances domestic investment. C. there is a negative difference between capital inflows and capital outflows for a country. D. there is a positive difference between capital inflows and capital outflows of a country.
U.S. exports of services were equal to about ____________ of U.S. exports of goods in 2014, compared to ________ in 1980.
a. one-half; one-fourth B. one-half; one-third c. one-half; one-fifth d. one-half; one-eighth