If a firm has an average total cost of $55 and an average fixed cost of $10 for producing 5 units of output, then the total variable cost will be:
a. $550.
b. $525.
c. $225.
d. $65.
Ans: c. $225.
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Explain how unemployment changes over the business cycle. Why do these changes occur?
What will be an ideal response?
If a U.S. firm invites foreign officials to an industry conference and pays for foreign officials to have a modest lunch at the conference, the Foreign Corrupt Practice Act (FCPA) would ________ consider the lunch to be a facilitating payment and would ________ consider the act to be illegal.
A) likely; likely B) likely not; not likely C) likely; not likely D) likely not; likely
Specialization refers to
a. one person performing a wide variety of tasks b. labor replacing capital in production c. capital replacing labor in production d. limiting the number of tasks a resource performs e. performing all tasks with only one resource
A situation in which output decreases while prices increase is often referred to as:
A. inflation. B. negative economic growth. C. a recession. D. stagflation.