Answer the following questions true (T) or false (F)
1. Average total cost is equal to average variable cost minus average fixed cost.
2. As output increases, average fixed cost gets smaller and smaller.
3. A firm's short-run average total cost curve is parallel to its short-run average variable cost curve.
1. FALSE
2. TRUE
3. FALSE
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Mr. Adams owns a textile business. In order to deal with the principal-agent problem, Mr. Adams might offer his employees
A) incentive pay. B) long-term contracts. C) part- ownership. D) all of the above.
Refer to Figure 22-1. Suppose the per-worker production function in the figure above represents the production function for the U.S. economy
If the United States decided to double its support of university research, this would cause a movement from A) B to C. B) D to C. C) B to A. D) A to B.