Suppose the total cost of producing T-shirts can be represented as TC = 50 + 2q. Which of the following statements is TRUE at all levels of production?
A) MC = AVC
B) MC = AC
C) MC > AFC
D) All of the above.
A
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All of the following are ground rules government can establish to help markets function well except
A) competition. B) honesty. C) information. D) collusion.
An example of someone bearing the burden of a negative consumption externality would be
A) Taylor living downwind from a feedlot. B) LaShawn grows beautiful roses in her garden. C) Jess's roommate smokes and she doesn't. D) All of these are examples of someone bearing the burden of a negative consumption externality. E) None of these is an example of someone bearing the burden of a negative consumption externality.
Tobacco prices fell dramatically in the early 1600s in spite of demand increases because:
a. supply was also increasing. b. supply was decreasing. c. new farming machinery was introduced. d. the colonial government provided agriculture subsidies for tobacco farmers.
The marginal cost of an airline ticket is the total cost of operating a flight divided by the number of passengers who buy tickets.
Answer the following statement true (T) or false (F)