Nonmarket Transactions Refer To

question 14

Multiple Choice

Nonmarket transactions refer to:

• A)purchases in the spot market.
• B)horizontal integration.
• C)long-term contracts.
• D)purchases in the international market.

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Definitions:

Average Total Cost

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

Marginal Cost

The outgoings associated with the production of one more unit of a product or service.

Average Variable Cost

The total variable costs divided by the quantity of output produced; it varies with the level of output.

Long-Run Average Total Cost Curve

A graphical representation showing the relationship between output and average total cost when fixed cost has been chosen to minimize average total cost for each level of output.