If you know that with 8 units of output, average fixed cost is $40 and average variable cost is $25, then total cost at this output level is:
a. $320
b. $200
c. $520
d. $1000
c
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If the U.S. dollar becomes weaker in international foreign exchange markets, imported goods become more expensive. One result of this is that
A) domestic employment rises. B) net exports increase. C) real Gross Domestic Product (GDP) increases. D) net exports decrease.
What does it mean to say that a perfectly competitive firm is a price taker? Can't a firm set any price it chooses?
What will be an ideal response?
The price elasticity of supply
A) is the slope of the supply curve. B) is the percentage change in quantity supplied divided by the percentage change in price. C) is always negative. D) does not vary between the long and the short run.
Topic Market failure, Difficulty M, Type RE, Answer c Which of the following is not an example of market failure?
a. Lack of competition. b. Externalities. c. Equilibrium. d. Extreme income inequality.