Which of the Following Statements Is True

question 135

Multiple Choice

Which of the following statements is true?

• A)At a high level of output, AFC is zero.
• B)If the law of diminishing marginal returns did not exist, then the marginal cost curve would not have an upward-sloping portion.
• C)The marginal cost curve cuts the average fixed cost curve at its minimum.
• D)There are no fixed costs in the short run.
• E)none of the above

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Definitions:

Annually

Pertaining to an event or activity that occurs once every year.

New Home Prices

The selling prices of newly constructed homes currently on the market.

Cost

The amount of money required to purchase goods or services or the value consumed in the production of goods or services.

Discount Rate

The rate of interest applied to loans provided to commercial banks and other financial institutions by the Federal Reserve through its discount window.