The total cost curve is the sum of the:

a. total fixed and total variable cost curves.
b. total fixed and marginal cost curves.
c. marginal cost and total variable cost curves.
d. none of these.

a

Economics

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A point inside the production possibilities curve may indicate that resources are not being used efficiently.

a. true b. false

Economics

Suppose that a consumer has a marginal propensity to consume of 0.7. If this consumer earns an extra €2, her consumption spending would be expected to increase by:

A. €0.60. B. €0.70. C. €1.40. D. €1.70.

Economics