The Concept of "Demand- Determined Output" Requires _ to Remain

question 38

Multiple Choice

The concept of "demand- determined output" requires _ to remain constant as output increases.

• A)government purchases
• B)technology of production
• C)firms' unit costs
• D)the ratio of price setters to price takers
• E)labour productivity

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Definitions:

Average Variable Cost

The cost per unit of output that varies with the level of production, typically including labor and material costs.

Marginal Cost

The cost added by producing one additional unit of a product or service.

Total Fixed Cost

The total of all expenses that do not vary with the amount of production or output.

Average Total Cost

The cost per unit of output, calculated by dividing the total production cost by the quantity of units produced.