Refer to the above diagram. At output level Q total cost is:
A. 0AFQ plus BCDE.
B. 0BEQ plus BCDE.
C. BCDE.
D. 0BEQ.
Answer: B
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Which of the following is the best example of a tariff?
A) a $5,000 per-car fee imposed on all sports utility vehicles imported into the United States B) a limit imposed on the number of sports utility vehicles that the United States can import from Japan C) a tax placed on all sports utility vehicles sold in the domestic market D) a subsidy granted by the U.S. government to domestic sports utility vehicle manufacturers so they can compete more effectively with foreign sports utility vehicle manufacturers
Advertising: a. cannot influence market demand
b. shifts the average total cost curve upward. c. is used only by perfectly competitive firms. d. makes demand more elastic by creating customer loyalty.
If General Motors imports parts from its plants in Canada and Mexico for finished trucks that it will sell across the NAFTA region, what type of trade does this represent?
What will be an ideal response?
A firm that responds to a regulatory rule in a way that permits technical compliance while allowing the firm to violate the spirit of the regulation has
A) reduced the scope of the lemons problem. B) shared the gains and pains of regulation. C) engaged in a creative response to regulation. D) become a captured regulator.