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.
Correct Answer:

Verified
Correct Answer:
Verified
Q19: Short-run total cost is the sum of<br>A)short-run
Q20: In the long run<br>A)all inputs are fixed.<br>B)all
Q21: Suppose a production function is q =
Q22: A firm's economic profits are given by<br>A)total
Q23: Technical progress will<br>A)shift a firm's production function
Q25: Suppose a cost function is TC =
Q26: Suppose MPL = 20 and MPK =
Q27: A linear total cost curve which passes
Q28: The shape of a firm's expansion path
Q29: The shape of a firm's long-run average