Author Question: If total cost is 1,000 when output is zero, and total cost is 1,200 when output is one, and total ... (Read 113 times)

ahriuashd · **on:** Jun 30, 2018

If total cost is 1,000 when output is zero, and total cost is 1,200 when output is one, and total cost is 1,500 when output is two, then which of the following is true?
a. Total fixed cost is 1,500.
b. The marginal cost of producing the first unit of output is 1,200.
c. The marginal cost of producing the second unit of output is 300.
d. The average fixed cost is 750 when two units of output are produced.

Question 2

Identify the correct statement.
a. A budget deficit is a flow variable, while debt is a stock variable.
b. A budget deficit is a stock variable, while debt is a flow variable.
c. A budget deficit and debt are both stock variables.
d. The budget deficit decreases when aggregate demand decreases.
e. Debt increases when the budget deficit decreases.