With fixed costs of $200 . a firm has average total costs of $5 and average variable costs of $3 . Its output is:

Answer the following statement(s) true (T) or false (F)

1. If the demand curve for a good is relatively flat, a small change in price results in a relatively large change in quantity demanded 2. If safer cars reduce a driver's chance of dying in an accident, then there will be fewer driver fatalities. 3. If one wants to apply the theoretical side of economics by examining data, they use a family of statistical techniques called econometrics. 4. A sales tax causes the demand curve to shift upwards by the amount of the tax. 5. As defined by economists, the supply of corn refers to the number of bushels of corn that farmers bring to the market.

Which of the following statements is TRUE?

A) APC + APS < 1 B) APC + APS + MPC + MPS = 1 C) APC + MPS = 1 D) APC + APS = 1