When a Firm Increases the Amount of Capital It Uses

question 17

Multiple Choice

When a firm increases the amount of capital it uses, the

• A)average total cost curve shifts down.
• B)average total cost curve shifts up.
• C)average total cost curve twists, increasing ATC at low output levels and decreasing ATC at high output levels.
• D)average variable cost curve shifts up.
• E)average fixed cost decreases.

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Definitions:

Medians

The middle value of a data set when it is ordered from least to greatest, or the line in geometry that divides a figure into two equal parts.

Frequencies

The rate at which a vibration occurs that constitutes a wave, either in material (as in sound waves) or in an electromagnetic field (as in radio waves and light).

Averages

Statistical measures that summarize or give an indication of the central tendency or typical value of a set of numbers.

Statistical Generalization

The process of inferring general trends or conclusions about a population based on sample data.