At any level of output
A. average total cost will exceed average variable cost by the amount of the average fixed cost.
B. marginal cost will exceed average variable cost by the amount of the average fixed cost.
C. average variable cost will exceed average total cost in the short run.
D. average variable cost will exceed average fixed cost by the amount of the average total cost.
Answer: A
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The figure above shows the supply and demand curves for pizza. If the market is at its competitive equilibrium, what area in the graph above represents:
a. consumer surplus? b. producer surplus?
What can the Federal Reserve do to reduce the natural rate of unemployment?
A) nothing B) follow expansionary monetary policy that will reduce inflation C) follow expansionary monetary policy that will increase inflation D) follow contractionary monetary policy that will increase inflation