Which of the Following Is Characteristic of Short-Run Costs Associated

question 68

Multiple Choice

Which of the following is characteristic of short-run costs associated with increasing levels of output?

• A)The difference between average total cost and average variable cost decreases.
• B)Average variable cost typically increases.
• C)Average total cost is equal to the difference between average variable cost and average fixed cost.
• D)Average fixed cost is constant.
• E)Marginal cost is equal to the difference between total cost and total variable cost.

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Definitions:

Passive Policy

A government or central bank policy characterized by minimal intervention in the economy.

Anticipated Inflation

The rate of inflation that consumers, businesses, and investors expect to occur in the future.

Congressional Appropriations

The legal process by which the United States Congress allocates federal funds to various government agencies, departments, and programs.

Board of Governors

refers to the leading body or group of individuals overseeing the operations and policy-making of an organization, such as a central bank.