A Positive Statement I.makes a Statement About How the World Operates

question 75

Multiple Choice

A positive statement
i.makes a statement about how the world operates.
ii.is a true statement.
iii.can be tested against the facts.

• A) i and ii
• B) i and iii
• C) ii and iii
• D) i, ii and iii
• E) i only

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Definitions:

Average Variable Costs

Average variable costs represent the per-unit variable costs of production, calculated by dividing total variable costs by the quantity of output.

Average Fixed Costs

Average fixed costs refer to the fixed costs of production (costs that do not change with the level of output) divided by the quantity of output produced, which decreases as output increases.

Total Cost

The entire production cost, comprising both unchanging and variable expenditures.

Diminishing Marginal Product

A principle stating that as additional units of a variable input are added to a fixed input, the additional output produced by each new unit will eventually decline.