The Vertical Distance Between the Total Variable Cost Curve and the Total

question 183

Multiple Choice

The vertical distance between the total variable cost curve and the total cost curve ________ as output increases; the vertical distance between the average variable cost curve and the average total cost curve ________ as output increases.

• A) decreases; remains the same
• B) is constant; becomes smaller
• C) increases; becomes smaller at first but then increases
• D) increases; remains the same

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Definitions:

Bumper Crops

An exceptionally large crop yield, often much higher than average.

Gross Incomes

The total income received before any deductions or taxes are applied.

Price Elasticity of Demand

The evaluation of how the quantity demanded for a product is influenced by price movements.

Farm Products

Goods that are produced by agriculture, including both crops and livestock.