Which of the following must necessarily occur as the quantity of output increases?
a. Average total cost must rise.
b. Average variable cost must rise.
c. Average fixed cost must fall.
d. Marginal cost must rise.
Ans: c. Average fixed cost must fall.
Economics
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An externality is a situation in which
A) private costs diverge from social costs. B) internal costs diverge from private costs. C) there are no social costs. D) the cost borne by the consumer is greater than the monetary price.
Economics
Real GDP measures:
A. current output at current prices. B. current output at base year prices. C. base year output at current prices. D. base year output at current exchange rates.
Economics