Average fixed cost:
A. equals marginal cost when average total cost is at its minimum.
B. graphs as a U-shaped curve.
C. declines continually as output increases.
D. may be found for any output by adding average variable cost and average total cost.
Answer: C
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A reliable indicator of a healthy economy is an appreciating currency
a. True b. False
Answer the following statements true (T) or false (F)
1. The relationship between the price of a book and the number of volumes purchased would be an example of microeconomics. 2. Some economic principles are based on physical phenomena. 3. If I stand up at a football game, I can see better. But if we all stand up, we block each other’s view. This is an example of the fallacy of composition. 4. The basic function of any economic system is to provide the framework for allocating scarce resources in a way that adequately satisfies unlimited wants.