The Vertical Distance Between a Firm's ATC and AVC Curves

question 443

Multiple Choice

The vertical distance between a firm's ATC and AVC curves represents

• A)AFC, which increases as output increases.
• B)AFC, which decreases as output increases.
• C)marginal costs, which decrease as output decreases.
• D)marginal costs, which increase as output increases.

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Definitions:

Positive Values

Numbers greater than zero.

Degree of Freedom

The number of independent ways by which a dynamic system can move without violating any constraint applied on it, often used in statistics to determine the number of values in the final calculation of a statistic that are free to vary.

Chi-square Distribution

Chi-square distribution is a distribution of the sum of squared independent random variables, used primarily in hypothesis testing for categorical data.

Chi-square Distribution

A probability distribution used in statistical analysis that is applicable when dealing with categorical data and assessing how likely observations are due to chance.