The Short-Run Average Variable Cost Curve

question 217

Multiple Choice

The short-run average variable cost curve

• A)is always downward-sloping
• B)starts at the origin and always slopes upward
• C)starts above the origin and always slopes upward
• D)is a horizontal line intersecting the vertical axis
• E)slopes downward at low rates of output, then slopes upward at higher rates of output

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Definitions:

Substitution

The economic principle describing how consumers or producers switch between goods or resources as relative prices or availability change.

Quart

A unit of liquid volume equal to two pints, approximately 0.946 liters in the United States.

Pound

A unit of currency used in the United Kingdom and other areas, or a unit of weight equal to 16 ounces.

Convex Preferences

Consumer preferences that signify a desire for diversified bundles of goods, represented by convex-shaped indifference curves.