Total variable cost ________ as output increases, and total fixed cost ________ as output increases.
A. increases; decreases
B. increases; increases
C. does not change; does not change
D. increases; does not change
Answer: D
You might also like to view...
What can economists conclude if they observe an increase in real GDP?
A) The price level must have fallen. B) The real output of final goods and services must have risen. C) National welfare must have risen. D) Nominal GDP must have risen. E) All of the above.
If a firm enjoys producer surplus in perfectly competitive Market A of $1000 and would enjoy producer surplus in perfectly competitive Market B of $1200, the firm would consider moving to Market B if
A) fixed costs are greater than $100 in Market A. B) fixed costs are less than $200 in Market B. C) fixed costs are less than $300 but greater than $200 in Market B. D) fixed costs in Market B are less than the fixed costs in Market A plus $200.
If the transactions approach to measuring money is used, then the money supply consists of
A) currency only. B) transaction deposits only. C) currency and transaction deposits only. D) currency, checkable and debitable deposits, and traveler's checks.
The colonies as a whole had a significant commodity trade deficit with England. In order to finance this deficit the colonies relied on all of the following sources of income except
a. a commodity trade surplus with Southern Europe. b. the sale of colonial shipping services. c. mining of gold and silver that were used to make Colonial coins. d. British government spending in the colonies.