In Comparing the Changes in TC and TVC Associated with an Additional

question 41

Multiple Choice

In comparing the changes in TC and TVC associated with an additional unit of output,we find that:

• A) the change in TVC is equal to MC,while the change in TC is equal to TFC.
• B) the change in TC exceeds the change in TVC.
• C) the change in TVC exceeds the change in TC.
• D) both TC and TVC are equal to MC.

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Definitions:

Supply Curve

A graph that shows the relationship between the price of a good and the quantity of the good that suppliers are willing to sell.

Equilibrium Price

The price at which the quantity of a product demanded by consumers equals the quantity supplied by producers, leading to a balance in the market.

Demand Schedule

A chart indicating the amount of a product or service buyers are prepared and capable of buying at different price levels.

Shortage/Surplus

A state in the marketplace where the demand for a good surpasses its supply, causing a shortage, or where the supply of a product outpaces its demand, resulting in a surplus.