From Example 7.2, most pizza restaurants have large fixed costs and relatively low variable costs. What does this tell us about the average variable cost (AVC) of producing pizza?
A) AVC is relatively low
B) AVC is relatively high
C) AVC is high for low quantities but declines quickly
D) AVC is increasing for all quantity levels
A
Economics
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Which of the following events will increase short-run aggregate supply?
A) an advance in technology B) an increase in resource prices C) an increase in the natural unemployment rate D) an increase in foreign income
Economics
We expect the price elasticity of supply to be
A) negative. B) positive. C) between -1 and +1. D) zero.
Economics