Which of the Following Statements Is True

question 44

Multiple Choice

Which of the following statements is true?

• A)Capital goods are a type of intermediate good.
• B)Capital goods are final goods because they are not used up during a given year.
• C)Capital goods are produced in the same year as the related final goods,whereas intermediate goods are produced in different years.
• D)Capital goods are produced in one year and final goods are produced over a period of more than one year.

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Definitions:

Profit-maximizing

The method or tactic of modifying output and setting prices to maximize profits.

ATC

It refers to dividing the entire cost of production by the number of units produced to get the Average Total Cost.

AVC

The variable cost for each unit of production, known as Average Variable Cost.

AFC

Stands for Average Fixed Cost, which is the fixed costs divided by the quantity of output produced, illustrating how fixed costs spread over units decrease as quantity increases.