Which of the following observations is true?
A. TFC remains the same irrespective of units of output produced.
B. TVC remains the same irrespective of units of output produced.
C. TVC falls as the unit of output increases.
D. AFC increases as output increases further and further.
Answer: A
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The total revenue from selling trucks is equal to
a. the price of a truck times the quantity sold b. the change in quantity sold divided by the change in price c. average cost times quantity produced d. the price of a truck times the quantity produced e. the price of a truck times the price elasticity of demand
A perfectly competitive producer's demand curve is:
a. a horizontal line. b. also the market-demand curve. c. downward sloping but more elastic than the market-demand curve. d. a vertical line. e. upward sloping.