The Vertical Distance Between the Total Cost Curve and the Total

question 237

Multiple Choice

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

• A) is constant; decreases
• B) decreases; is constant
• C) increases; decreases
• D) decreases; increases
• E) decreases; decreases

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Definitions:

Labor Unions

Organizations that represent the collective interests of workers in negotiations with employers over wages, working conditions, and other employment terms.

Sherman Antitrust Act

An 1890 United States federal statute that prohibits monopolistic business practices and supports competition in the marketplace.

Unions

Associations of workers formed to negotiate collectively with employers over wages, work conditions, and rights; another term for labor unions.

Industrial Relations School

An academic field of study that focuses on the relationships between employers, employees, unions, and the government in the workplace and the labor market.