If a firm's total costs are $80 when 10 units of output are produced and $90 when 11 units of output are produced, the marginal cost of the 11th unit is
A. $1.
B. $5.
C. $8.09.
D. $10.
Answer: D
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The interest rate banks charge each other on loans of reserves is called the
A) required reserve rate. B) discount rate. C) real interest rate. D) coupon rate. E) federal funds rate.
If India has an absolute advantage in rug production when compared to England, then:
a. India should export rugs to England. b. England should export rugs to India. c. international trade should not occur. d. England uses fewer resources to produce rugs than India. e. India uses fewer resources to produce rugs than England.
The minimum short-run average total cost for Tony's Barbecue equals $8.50 at an output level of 100 meals per day. The market price of each meal is $8 . In short-run equilibrium, Tony
a. will suffer an economic loss of $50 per day, serving 100 meals per day b. cannot avoid an economic loss and should produce where the difference between average total cost and the price is minimized c. cannot avoid an economic loss and should serve no meals per day d. will suffer an economic loss greater than $50 per day, serving more than 100 meals per day e. will suffer an economic loss greater than $50 per day, serving less than 100 meals per day
Monopoly is a market structure with
a. no entry of new firms b. difficult entry of new firms c. easy entry of new firms d. only a few close substitute goods in the industry e. mutual interdependence among firms