The Vertical Distance Between the Total Variable Cost Curve and the Total

question 183

Multiple Choice

The vertical distance between the total variable cost curve and the total cost curve ________ as output increases; the vertical distance between the average variable cost curve and the average total cost curve ________ as output increases.

• A) decreases; remains the same
• B) is constant; becomes smaller
• C) increases; becomes smaller at first but then increases
• D) increases; remains the same

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Definitions:

Low-Opportunity Cost

Describes a situation where choosing one option over another entails a minimal sacrifice of alternative opportunities or benefits.

International Trade

The trading of products, services, and financial assets between different countries or territories.

Production

The process of creating goods or services by combining labor, capital, and resources to meet consumer demands or needs.

Currencies

Systems of money in general use in particular countries or geopolitical regions.