If a firm's average fixed cost is $4 and its average total cost is $6, its average variable cost is:

A. $20.
B. $10.
C. $1.
D. $2.

Answer: D

Economics

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Moral hazard:

A. always happens when adverse selection is a problem. B. can happen when adverse selection is a problem. C. never happens when adverse selection is a problem. D. None of these statements is true.

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