If fixed costs do not change, then marginal cost
A) equals the change in variable cost divided by the change in output.
B) also remains constant.
C) equals the change in average fixed cost divided by the change in output.
D) equals the change in average variable cost divided by the change in output.
A
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Which of the following situations is an example of bank mismanagement?
a. Bank W decreasing its rate of interest below the rate set by the Fed to attract more borrowers b. Bank X charging high fees on the processing of loans and checks c. Bank Y refusing loans to all clients who have an asset value below 25,000 d. Bank Z providing loans only to large corporate houses with a high net worth
Cyclical unemployment is equal to zero when:
A. actual GDP and potential GDP are equal. B. there is no recessionary gap. C. there is no expansionary gap. D. frictional unemployment equals structural unemployment.