The Total Variable Cost Curve ________ Because ________ as Output

question 14

Multiple Choice

The total variable cost curve ________ because ________ as output increases.

• A) slopes upward; variable cost increases
• B) slopes upward; marginal cost increases
• C) slopes downward; variable cost increases
• D) slopes downward; marginal cost increases
• E) is horizontal; fixed cost does not change

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Definitions:

Intensive Margin

The degree to which factors of production, such as labor, are utilized more intensely to increase output in the short term.

Consumption Changes

Variations in the amount and types of goods and services used by households over time.

Barley Crop

A cereal grain that is used worldwide as fodder for animals, as a source of fermentable material for beer and certain distilled beverages, and as a component of various health foods.

Aggregate Demand

The total demand for all goods and services within an economy at a given overall price level and in a given time period.