A firm’s production process shows constant returns to scale. It can produce 5,000 widgets at a total cost of $2,500 and 10,000 widgets at an average cost of
A. $10,000.
B. $5,000.
C. $2,000.
D. $0.50.
Answer: D
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OPEC is an example of a:
A. monopsony. B. monopoly. C. duopoly. D. cartel.
Restricting access to endangered common resources assigns
A) permanent property rights to those people given permission to use the resource. B) temporary property rights to those people given permission to use the resource. C) property rights to no one since access has been restricted to only a select few. D) property rights to society in general since the resource is a common resource.
Suppose a perfectly competitive firm is producing 1,000 units of output and the marginal cost of the 1,000th unit is $7. If the firm can sell each unit of output for $7 and the firm's revenue is sufficient to cover its variable cost, the firm should:
A. leave production unchanged. B. decrease production to lower losses. C. increase price to increase profits. D. increase production to increase profits.
Money enables us to make comparisons of value among goods and services. This is the ________ use of money.
A. inflation fighting B. store of value C. standard of value D. medium of exchange