Straker Industries estimated its short-run costs using a U-shaped average variable cost function of the formAVC = a + bQ + cQ2and obtained the following results. Total fixed cost (TFC) at Straker Industries is $1,000. 
At what level of output is average variable cost (AVC) at its minimum point for Straker Industries?
A. 7
B. 14
C. 0.14
D. 28
E. 4.7
Answer: A
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Suppose that Venezuela produces beef and oil and it can switch production between each at a constant rate. If the most beef it can produce is 300 million pounds and the most oil it can produce is 50 million barrels, then what is the opportunity cost of a pound of beef and what is the opportunity cost of a barrel of oil?
The main reason that President Clinton was forced to revise his campaign promise to cut taxes was that, in 1993, he faced a large
A. balance of payments surplus. B. balance of payments deficit. C. federal budget deficit. D. federal budget surplus.
The number of firms in a monopolistically competitive market means that
A. each firm has a relatively small share of the total market since there are many firms in the industry. B. the firms will be likely to collude since there are only a few firms in the industry. C. all firms will have substantial monopoly power since there are so few firms in the industry. D. firms will have a hard time earning non-negative profits since there are many firms in the industry.
Assuming a perfectly competitive market implies that households do not need knowledge of qualities and prices of everything available in the market.
Answer the following statement true (T) or false (F)