Average total cost minus average variable cost ________ as output increases because ________ as output increases
A) decreases and then increases; marginal cost initially decreases and then increases
B) decreases; average fixed cost decreases
C) decreases; marginal returns diminish
D) decreases; economies of scale are present
B
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If the law of diminishing marginal productivity holds true, eventually both the marginal cost curve and the average cost curve must become:
A. downward sloping. B. horizontal lines. C. upward sloping. D. vertical lines.
Economic growth is defined as
A. an increase in the supply of money measured by its rate of change per year. B. any increase in per capita nominal GDP measured by its rate of change per year. C. an increase in the satisfaction of all people within a country. D. an increase in per capita real GDP measured by its rate of change per year.