In the short run, suppose average total cost is a straight line and marginal cost is positive and constant. Then, we know that fixed costs must:
A) be declining with output.
B) be positive.
C) equal zero.
D) We do not have enough information to answer this question.
C
Economics
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If wheat can be produced at a constant opportunity cost, then the supply of wheat is
A) elastic. B) inelastic. C) unit elastic. D) perfectly inelastic. E) perfectly elastic.
Economics
Consumer preferences, prices of related goods, income, and demographic characteristics are often termed:
A) market technologies. B) demand prices. C) demand shifters. D) supply determinants.
Economics