A firm sells 1000 units per week. It charges $70 per unit, the average variable costs are $25, and the average costs are $65 . At what price would the firm consider shutting down in the short run?
a. $10
b. $25
c. $65
d. $70
b
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The aggregate demand curve is usually
A) downward sloping. B) vertical. C) horizontal. D) upward sloping.
The above figure shows Bobby's indifference map for juice and snacks. Also shown are three budget lines resulting from different prices for snacks. As the price of snacks rises, Bobby's utility
A) stays the same. B) increases. C) decreases. D) might change, but there is not enough information to determine.
Which one of the following assets has the greater liquidity?
a. A $10 pizza b. A $10 ticket to next week's basketball game c. A $100 stereo d. A dollar bill e. A $200 U.S. savings bond
Suppose that MPL = 100 and MPK = 80. If W = 25 and R = 20, then a firm:
A. is producing its output at the lowest possible cost. B. could reduce costs by employing more labor and less capital. C. could reduce costs by employing more capital and less labor. D. could minimize costs by employing more of both inputs.