In the Short Run It Is Impossible for an Expansion

question 161

Multiple Choice

In the short run it is impossible for an expansion of output to increase

• A)average total cost.
• B)average fixed cost.
• C)marginal cost.
• D)average variable cost.

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Definitions:

Income Effect

How shifts in someone's or an entire economy's income level influence the demand for goods or services.

Indifference Curve

A graph representing different bundles of goods between which a consumer is indifferent, showing the trade-offs in consumption preferences.

Price Change

An adjustment in the price level of goods or services, which can be influenced by factors like supply and demand, inflation, and market competition.

Income Effect

Variations in personal or economic income and their influence on the demanded quantity of particular goods or services.