In the Short Run,as Output Gets Larger

question 264

Multiple Choice

In the short run,as output gets larger:

• A)fixed cost gets smaller.
• B)the average variable cost curve gets closer to the average total cost curve.
• C)marginal cost gets smaller.
• D)average total cost decreases after the point of diminishing returns.

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Definitions:

Indices

Benchmarks or measures that track the performance of a specific basket of stocks, bonds, or other investment vehicles.

Period

A span of time during which certain events or conditions exist or take place, often used in reference to financial reporting, investment intervals, or cycles.

Cross Hedging

The practice of hedging risk by using a contract that is correlated with, but not identical to, the actual underlying asset or liability.

Commodity

A basic good used in commerce that is interchangeable with other goods of the same type, often traded on futures exchanges.