When choosing the production level for tomorrow you find that at an output of 100 units, the total variable costs are $20,000 and the average fixed cost is only $50 . If the market price is $200, you should
a. hire an economic consultant
b. produce at a loss equal to $5,000
c. produce more than 100 units
d. produce fewer than 100 units
e. produce where MC is at a minimum
B
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Refer to Scenario 7.3. Which of the following combinations of inputs is on the isoquant to produce 400 units of output?
A) L = 0, K = 400 B) L = 400, K = 0 C) L = 100, K = 100 D) all of the above E) A and B, but not C
Cost centers are
a. Evaluated on the profits they earn b. Not evaluated on the profits they earn c. Sometimes evaluated on the profits they earn and sometimes not d. None of the above
If the market for Czech restaurants is making a large economic profit, which of the following examples would most likely be a direct consequence?
a. New French restaurants will enter the market. b. Existing French restaurants will leave the market. c. New Czech restaurants will enter the market. d. Existing Czech restaurants will leave the market.
The idea of charging two different groups of consumers two different prices is practiced in:
A. two-part pricing. B. commodity bundling. C. price matching. D. None of the answers are correct.