Suppose Chris is a potter who makes mugs. His total costs depend on the number of mugs he makes each day, as shown in the table below.Number ofMugs Per DayTotal CostPer Day0$101$142$193$254$325$406$49If Chris's fixed costs decrease, then in the short run his profit-maximizing level of output will:
A. not change.
B. increase.
C. only increase if he can earn a positive profit.
D. decrease.
Answer: A
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If American demand for purchases of Mexican goods has increased, how would you expect the equilibrium exchange rate in the market for dollars to respond? Support your answer graphically
What will be an ideal response?
The third monetarist proposition asserts that in the short run,
a. changes in money demand are the dominant factor causing cyclical movements in output and employment. b. money supply is only one of many factors resulting in cyclical movements in output and employment. c. money primarily influences the price level and other nominal magnitudes. d. None of the above
A move from E to F represents
A. an increase in quantity demanded.
B. a decrease in quantity demanded.
C. an increase in demand.
D. a decrease in demand.
Refer to the above table. The table gives the combinations of real disposable income and real consumption for a college student for a year. The break-even level of real disposable income is
A. 1400. B. 0. C. 6000. D. 1000.