Given the market demand and cost data in the above figure, the existence of two firms equal sized firms producing a total of 8 million cubic feet of natural gas means that the long-run average cost of producing natural gas is
A) 10 cents per cubic foot.
B) 20 cents per cubic foot.
C) 30 cents per cubic foot.
D) 40 cents per cubic foot.
B
You might also like to view...
Which of the following is a list of fixed inputs for a hospital?
A) bandages, casts, and other materials B) antibiotics, pain medication, and other prescription drugs C) the emergency room, intensive care unit, and other facilities D) the nurses, receptionists, and other employees E) the lobby, the doctors, and the electricity it uses
Mr. Woodard's cabinet shop is experiencing rapid growth in sales. As sales have increased, Mr. Woodard has found it necessary to hire more workers. However, he has observed that doubling the number of workers has less than doubled his output. What is the likely explanation?
A. The law of supply B. The law of diminishing marginal productivity C. The law of demand D. The law of diminishing marginal utility
Which of the following is NOT consistent with the law of diminishing marginal utility?
A. A symphony has free throat lozenges in their lobby. B. A student's enjoyment of a movie increases the more she watches it. C. A student selects to eat at an all-you-can-eat restaurant rather than at a restaurant that charges for refills. D. Newspaper vending machines are not as secure as soft drink machines.
Suppose a senior college football player approaches an insurance company and seeks to purchase an insurance policy against him receiving a career-ending injury. The insurance company
A) will sell him an insurance policy because the proposal entails uncertainty not risk. B) will sell him an insurance policy because the proposal entails risk not uncertainty. C) will not sell him an insurance policy because the proposal entails uncertainty not risk. D) will not sell him an insurance policy because the proposal entails risk not uncertainty.