Consider an Output Beyond the Minimum Point of a Firm's

question 161

Multiple Choice

Consider an output beyond the minimum point of a firm's short run average total cost curve. At this level of output the firm can use its ________ input at a lower average cost but only by using its ________ input at a higher average cost.

• A) fixed capital; variable labor
• B) variable labor; fixed capital
• C) variable capital; fixed labor
• D) fixed labor; variable capital

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Definitions:

College fund

A sum of money saved or invested over time, designated for covering future college education expenses.

Compounded monthly

Interest calculation method where the interest is added to the principal each month for the purpose of the next month's interest calculation, effectively increasing the amount over time.

Economic value

The monetary worth of a good or service as determined by the market.

Deferred annuity

An annuity contract that delays payments of income, installments, or a lump sum until the investor elects to receive them.