Refer to the diagram. The vertical distance between ATC and AVC reflects:
A. the law of diminishing returns.
B. the average fixed cost at each level of output.
C. marginal cost at each level of output.
D. the presence of economies of scale.
B. the average fixed cost at each level of output.
You might also like to view...
Using the data in the above table, if the firm employs 5 workers, total product (measured in units per day) and average product and marginal product of the fifth worker (measured in units per worker) are
A) 23, 5.00, and 4 respectively. B) 23, 5.75, and 4 respectively. C) 25, 5.00, and 2 respectively. D) 25, 5.75, and 4 respectively.
Moral hazard arises from
A) the difficulty of distinguishing good-risk borrowers from bad-risk borrowers. B) the likelihood that bad-risk borrowers are more likely to accept a loan than are good-risk borrowers. C) savers' difficulties in monitoring borrowers. D) borrowers' difficulties in locating savers.
Suppose the total cost of producing 50,000 telephones is $500,000 . Suppose also that at an output of 30,000 . the average total cost is $8 and the marginal cost is $6 . What is true about the minimum of the average total cost curve?
a. The minimum of the ATC is greater than $10. b. The minimum of the ATC is less than $8. c. The minimum of the ATC is between $8 and $10. d. The minimum of the ATC can be no bigger than $6. e. The minimum of the ATC corresponds to a quantity greater than 50,000.
Demand describes how much of something people:
A. are willing and able to buy at alternative prices under certain circumstances. B. want, but may not necessarily be able, to buy under certain circumstances. C. are willing and able to sell under certain circumstances. D. be able to buy, but might not want to buy under certain circumstances.