A Relative Price Is All of the Following Except

question 123

Multiple Choice

A relative price is all of the following except

• A)the ratio of one price to another.
• B)an opportunity cost.
• C)a quantity of a "basket" of goods and services forgone.
• D)determined by demand and supply.
• E)the lowest possible price available.

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Definitions:

Average Total Cost

The total cost of production divided by the quantity of output produced, representing the cost per unit of output.

Long Run

A period during which all inputs, including capital and labor, can be adjusted by firms. It is characterized by the flexibility of adjusting to conditions without any fixed constraints.

Average Costs

It's the cost associated with producing each unit, found by dividing the entire production expenses by the number of units produced.

Returns to Scale

The rate at which output increases as inputs are increased proportionally, indicating how efficiently larger production scales affect production volume.