Which statement is true regarding average variable cost?
a. Average variable cost is the additional cost of producing one more unit of output.
b. The average variable cost curve will always lie below the curve for average total cost.
c. Average variable cost is obtained when variable cost is multiplied by quantity of output.
d. As output grows, average variable cost moves farther away from average cost.
b. The average variable cost curve will always lie below the curve for average total cost.
At any level of output, the average variable cost curve will always lie below the curve for average total cost. The reason is that average total cost includes average variable cost and average fixed cost.
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Which one of the following is a key to economic development?
A) an educated population B) the removal of property rights C) the preservation of established means of production D) a high level of protection against imported products
The marginal product of labor curve can be shifted to the right by
a. improved technology b. additional physical capital c. improved human capital d. all of the above e. none of the above