Macroeconomists Study

question 145

Multiple Choice

Macroeconomists study

• A)decisions of households and firms.
• B)the interaction of households and firms.
• C)economy-wide phenomena.
• D)regulations on firms and unions.

---

Definitions:

Average Fixed Costs

The total fixed costs divided by the number of units produced, representing the fixed cost per unit of output.

Marginal Cost

The cost of producing one additional unit of a product or service.

Total Cost

The sum of all costs incurred by a business in producing goods or services, including both fixed and variable costs.

AVC

An alternative term for Average Variable Cost, reflecting the variable costs incurred per unit of output.