If a firm produces 8 units of output with average fixed cost=$40 and average variable cost=$25, what is its average cost?
a. $100
b. $20
c. $65
d. $32
c
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Suppose the stock of capital remains constant. By adding more labor, perhaps a second work shift, output
A) remains the same. B) decreases. C) increases. D) becomes more costly.
If a firm's marginal profit is negative, it should reduce its output level
a. True b. False Indicate whether the statement is true or false
When the price of an asset rises above what appears to be its fundamental value, the market is said to be experiencing a speculative bubble
a. True b. False Indicate whether the statement is true or false
Industrial policies are:
A. government investments in certain industries to encourage growth in those industries. B. favorable tax policies to encourage private domestic investment in certain industries. C. favorable trade policies to encourage private investment in certain industries. D. All of these are true.