What are the two components of a firm's total cost in the short run, and what are their definitions?
What will be an ideal response?
The two parts are the total fixed cost (TFC) and the total variable cost (TVC). TFC is the cost that does not vary as output varies. Examples include rent on a building or interest on a business loan. TVC is the cost that varies as output varies. Examples include a firm's payroll for labor or payments for raw materials.
Economics
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Which of the following is not a correct statement about individual and group preferences?
a. Individuals have preferences b. Groups have preferences c. Individuals within groups have preferences d. Groups make collective decisions on behalf of their members
Economics
The present value of a promise to pay $100 one year from now would be greater if the interest rate were higher
a. True b. False
Economics