Suppose that for a particular firm the only variable input into the production process is labor and that output equals zero when no workers are hired. In addition, suppose that the average total cost when 5 units of output are produced is $30, and the marginal cost of the sixth unit of output is $60 . What is the average total cost when six units are produced?
a. $10
b. $25
c. $30
d. $35
d
You might also like to view...
If inventory investment during a year was minus $6 billion, producers must have
a. produced only $6 billion of new capital assets during the year. b. sold $6 billion more goods and services during the year than they produced. c. added goods valued at $6 billion to their stock of unsold goods and raw materials. d. produced new capital assets that exceeded the depreciation allowance by $6 billion.
The Federal Open Market Committee (FOMC) is composed of the seven members of the Board of Governors,
A) the president of the New York Federal Reserve District Bank, and four of the remaining 11 Federal Reserve District Bank presidents who rotate on an annual basis. B) and five state governors who rotate on an annual basis. C) four Federal Reserve District Bank presidents who rotate on an annual basis, and the head of the Senate Banking Committee. D) and the Secretary of the Treasury.
Market share is the percentage of total
A. Market output produced by the four largest firms in an industry. B. Industry profit earned by a single firm. C. Market output produced by a single firm. D. Market output produced by the largest firm in an industry.
The market structure of monopoly exists when
A. there are many producers of differentiated products. B. there are a small number of interdependent firms that constitute the entire market. C. there are many producers of a homogeneous product. D. there is a single producer of a product.