Average variable cost is
a. the change in cost as output decreases
b. the change in cost as output increases
c. TC / quantity of output
d. TVC / quantity of output
e. AFC + AVC
D
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Which of the following is NOT a reason Mexico and Canada wanted a free trade agreement with the United States?
A) Mexico wanted increased direct foreign investment. B) Canada wanted to guarantee access to the U.S. market. C) Mexico wanted the United States to lower its high barriers to Mexican products. D) Mexico wanted to institutionalize its economic reforms.
In a two-good world, every allocation would be efficient only if:
a. both individuals were identical. b. both individuals regard the two goods as perfect substitutes. c. both individuals were identical and regard the two goods as perfect complements. d. both individuals were identical and regard the two goods as perfect substitutes.