A firm produces 300 units of output at a total cost of $1,000 . If fixed costs are $100,
a. average fixed cost is $10.
b. average variable cost is $3.
c. average total cost is $4.
d. average total cost is $5.
b
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Refer to Table 4-13. The equations above describe the demand and supply for Aunt Maud's Premium Hand Lotion. The equilibrium price and quantity for Aunt Maud's lotion are $20 and 30 thousand units. What is the value of consumer surplus?
A) $300 thousand B) $450 thousand C) $900 thousand D) $1,500 thousand
What advantages does a money economy have over a barter economy?
The World Bank will primarily make
A. long-term in nature for investment projects which might not receive private financial support. B. short-term loans for investment projects which might not receive private financial support. C. long-term loans for investment projects that are relatively risky. D. short-term loans for investment projects that are relatively safe.
The main difference between a monopsonist and a competitive buyer of labor is that
A. the competitor is a small firm while the monopsonist is a large firm. B. the competitor is also a competitor in product markets while the monopsonist is also a monopoly in product markets. C. the competitor can hire as many workers as it wants at the going wage while a monopsonist can force wages down when hiring additional workers. D. the competitor can hire as many workers as it wants at the going wage while a monopsonist must raise wages to hire additional workers.