Suppose total cost is $1,000 when output is zero, $1,200 when output is one, and $1,500 when output is two, then which of the following is true?
a. Average total cost is $500 when two units of output are produced.
b. Total fixed cost is $1,500.
c. The marginal cost of producing the first unit of output is $1,200.
d. The marginal cost of producing the second unit of output is $300.
d
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A) inelastic; all B) elastic; all C) inelastic; some of D) inelastic; none of E) elastic; none of
In the long run, firms in a monopolistically competitive market
A) usually earn positive economic profits. B) always earn monopoly profits. C) usually earn economic losses. D) earn zero economic profits.
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