Positive Statements Are Descriptive, While Normative Statements Are Prescriptive

question 284

True/False

Positive statements are descriptive, while normative statements are prescriptive.

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Definitions:

Average Total Cost

The total cost of production divided by the total quantity produced, indicating the cost per unit of output.

Marginal Cost

A measure of the expense associated with manufacturing an additional item of a particular good.

Total Variable Cost

The sum of all variable costs (costs that change with the level of output) associated with producing a specific amount of a good or service.

Product Price

The amount of money required to purchase a good or service.