Suppose a firm has an output of 10,000 cans and a total fixed cost of $2,000 . At an output of 5,000 the difference between the total cost and the total variable cost is
a. 5000 cans
b. $0.40
c. the average fixed cost
d. $2,000
e. $0.20
D
You might also like to view...
Suppose the Fed buys government securities from a commercial bank. Why is there a multiplier effect on the quantity of money?
What will be an ideal response?
Assume that coffee and tea are substitutes for each other. If weather conditions cause a substantial portion of the available coffee crop to be destroyed, then most probably: a. the price of tea will decrease
b. the price of coffee will decrease. c. the price of tea will increase d. none of the above
Chris has a one-hour break between classes every Wednesday. Chris can either stay at the library and study or go to the gym and work out. The decision Chris must make is:
A. not an economic problem because it's an hour that Chris has no matter what he does. B. an economic problem because Chris has only one hour, and engaging in one activity means giving up the other. C. not an economic problem because neither activity costs money. D. an economic problem because the tuition Chris pays covers the cost of both the gym and the library.
Below, The graph on the left shows the short-run marginal cost curve for a typical firm selling in a perfectly competitive industry. The graph on the right shows current industry demand and supply.
What is the marginal revenue for the FIRM from selling the 250th unit of output?
A. $8 B. $4 C. $10 D. $6 E. zero