A Firm's Short-Run Average Cost Is Defined as

question 24

Multiple Choice

A firm's short-run average cost is defined as

• A)the ratio of total output to short-run total cost.
• B)the ratio of short-run total cost to total output.
• C)the additional cost of producing one more unit of output while some input is fixed.
• D)the additional cost of producing one more unit of output while all inputs are fixed.

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Definitions:

Stock Variable

A measure of a quantity at a particular point in time, such as wealth or capital.

Flow Variable

A quantity that is measured over a specific period of time, such as income or expenditure.

Federal Taxes

Taxes collected by the federal government from individuals and corporations to fund public goods and services.

Federal Debt

The total amount of money owed by the federal government, accrued from past borrowing.