Suppose That When the Price of Hamburgers Increases,the Ruiz Family

question 69

Multiple Choice

Suppose that when the price of hamburgers increases,the Ruiz family increases their purchases of hot dogs.To the Ruiz family

• A)hamburgers and hot dogs are complements.
• B)hamburgers and hot dogs are inferior goods.
• C)hamburgers and hot dogs are normal goods.
• D)hamburgers and hot dogs are substitutes.

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Definitions:

Variable Cost

A cost that varies with the level of output or production, such as materials and labor costs.

Fixed Cost

Costs that remain constant regardless of the level of production or business activity.

Average Cost

The total expenses incurred in manufacturing divided by the quantity of items manufactured, indicating the per unit cost of production.

Total Output

The total quantity of goods or services produced by a firm, industry, or economy in a specific period.