All of the following statements about variable costs are true except

A. they are equal to total costs in the long run.
B. they are constant as output increases.
C. they are zero if output is zero.
D. they are equal to the product of average variable cost and the output level.

Answer: B

Economics

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According to the U.S. Robinson-Patman Act of 1936, price discrimination

A) is always illegal. B) is legal unless it harms competition. C) may be used to drive rivals out of business. D) can only be justified if the price discrimination is due to actual cost differences.

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A rational person maximizes

A) risk. B) return. C) expected utility. D) return variance.

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