For any given level of output:
A) marginal cost must be greater than average cost.
B) average variable cost must be greater than average fixed cost.
C) average fixed cost must be greater than average variable cost.
D) fixed cost must be greater than variable cost.
E) None of the above is necessarily correct.
E
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The X-intercept of the budget constraint represents
a. how much of good Y can be purchased if no good X is purchased and all income is spent. b. how much of good X can be purchased if no good Y is purchased and all income is spent. c. total income divided by the price of X. d. b and c.
A tariff
a. is usually set by domestic producers of a good b. can be either a fixed dollar amount or a percentage of a good's value c. decreases domestic price for a good, holding all else constant d. improves economic efficiency in the importing nation e. improves economic efficiency in the exporting nation