At Any Level of Output

question 330

Multiple Choice

At any level of output.

• A)average variable cost will exceed average total cost in the short run.
• B)marginal cost will exceed average variable cost by the level of average fixed cost.
• C)average variable cost will exceed average fixed cost by the level of average total cost.
• D)average total cost will exceed average variable cost by the level of average fixed cost.

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Definitions:

Good Sold

Refers to merchandise or items that have been purchased or exchanged in a transaction.

Tax on Buyers

is a tax that is directly levied on consumers when they purchase goods or services, effectively increasing the purchase price.

Demand Curve

A graph showing the relationship between the price of a good and the quantity demanded by consumers, typically downward sloping to the right indicating an inverse relationship.

Tax on Buyers

A financial charge imposed directly on consumers, which tends to shift the demand curve downward, reflecting a decrease in the quantity demanded at each price.