Total fixed cost
A) increases as output increases.
B) does not change as output changes.
C) decreases as output increases.
D) initially decreases and then increases as output increases.
B
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If an increase in x (the variable on the horizontal axis) from 6 to 8 units causes a decrease in y (the variable on the vertical axis) from 4 to 3 units, the slope equals
A) 2. B) -2. C) 1/2. D) -1/2.
A monopolist faces a demand curve Q = 120 - 2p and has costs given by C(Q) = 20Q + 100
a. Write the monopolist's profits in terms of the price it charges. b. Use the derivative (w.r.t. price) to determine the monopolist's profit-maximizing price. c. Now, derive the monopolist's inverse demand based on the demand equation above. Write out the monopolist's profits in terms of quantity. d. Use the derivative w.r.t. Q to determine the monopolist's optimal quantity. What price does the monopoly charge?
As long as the marginal revenue curve lies above the horizontal axis,
a. total revenue must exceed total cost b. the total revenue curve must have a positive slope c. marginal revenue must exceed marginal cost d. profit must be rising e. the firm must be earning a profit
An assumption an economist might make while studying international trade is
a. there are only two countries. b. countries only produce two goods. c. technology does not change. d. All of the above are possible assumptions.