A factory produces 1,000 MP3 players per week. AVC = $10, FC = 5,000, the factory TC equals:
A. 15
B. 5,005
C. 6,000
D. 15,000
E. 50,000
D. 15,000
ATC = (TC / Q) 15 = (5,000 + x) / 1,000 3rd step
ATC: AVC + AFC ATC: 10 + 5 = 15 2nd step
AFC: FC / Q AFC: 5,000 / 1,000 = 5 1st step
You might also like to view...
The tendency for individuals to assign higher values to goods when they own the goods than when they do not possess the goods is known as the:
A) substitution effect. B) endowment effect. C) income effect. D) anchoring effect.
Under asymmetric information,
a. you never get what you pay for b. you sometimes get cheated c. you always get cheated d. at best you get what you pay for e. sellers make profits in excess of competitive returns
Marginal land is land that is not worth anything under any circumstances.
Answer the following statement true (T) or false (F)
Economies of scale exist when
A. marginal cost decreases as output increases. B. fixed cost decreases as output increases. C. total cost decreases as output increases. D. long-run average cost decreases as output increases.