In Economics,one of the Effects of Scarcity Is

question 163

Multiple Choice

In economics,one of the effects of scarcity is

• A)disutility.
• B)utility.
• C)choice.
• D)inefficiency.

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Definitions:

Total Variable Costs

This represents the sum of all costs that vary with the level of output in the production process, such as materials and labor directly involved in making a product.

Average Fixed Costs (AFC)

The fixed costs of production (not varying with output) divided by the quantity of output produced; typically decreases as production increases.

Total Fixed Costs (TFC)

The sum of all costs that remain constant regardless of the level of production or output in the short run.

Average Fixed Cost

The fixed costs of production divided by the total units of output, which decreases as production increases.