Average fixed cost:
a. declines continuously as output increases
b. is always greater than average variable cost.
c. equals the difference between average total cost and average variable cost.
d. is characterized by both (a) and (c).
d
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Canada is said to have an absolute advantage vis-à-vis the U.S. in the production of cod because it can produce cod
a. in larger quantities b. while the U.S. can't c. at a lower opportunity cost d. with fewer resources e. at a higher opportunity cost
Last year your job at the university cafeteria paid you $9 an hour and the price of a ten-minute long distance call to your girlfriend in California was $4 . This year your cafeteria job pays $9.90 per hour and the ten-minute phone call now costs $4.10 . You are clearly
a. worse off because of inflation. b. worse off because the phone call is now relatively more expensive. c. better off because your wage rate went up. d. better off because the phone call now costs less work.