In the short run:
A. TVC will increase for a time at a diminishing rate, but then beyond some point will increase
at an increasing rate.
B. TVC will increase for a time at an increasing rate, but then beyond some point will increase
at a diminishing rate.
C. TVC will increase by the same absolute amount for each additional unit of output
produced.
D. one cannot generalize concerning the behavior of TVC as output increases.
Answer: A
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What price should a firm charge for a package of two shirts given a marginal cost of $2 and an inverse demand function P = 6 ? 2Q by the representative consumer?
A. $6 B. $8 C. $10 D. $2
According to the above table, what is the absolute price elasticity of demand if price falls from $8.00 to $7.50?
A. 1.21 B. 4.00 C. 1.80 D. 2.82