If a firm has a total cost of $150 and a variable cost of $100 for producing 5 units of output, then the fixed cost is:
a. $35.
b. $50.
c. $250.
d. $100.
Ans: b. $50.
You might also like to view...
Let's assume that two countries have imposed high tariffs on each other's products and services to the point where all trade between the two countries has disappeared
Assume a newly elected member of parliament in one of the countries makes a proposal for unilateral tariff reduction regardless of whether the other country wishes to follow suit. Explain why such a policy change would actually be a good idea.
The doctrine of laissez faire is based on the belief that
A. Government directives are likely to do a better job of allocating resources than markets. B. Markets result in an unfair distribution of income. C. Markets are likely to do a better job of allocating resources than government directives. D. Government failure does not exist.
What is a prisoner's dilemma?
A) a game in which players act in rational, self-interested ways that leave everyone worse off B) a game that involves no dominant strategies C) a game in which players collude to outfox authorities D) a game in which prisoners are stumped because they cannot communicate with each other
As the velocity of money rises, the amount of money being held by individuals also rises
a. True b. False Indicate whether the statement is true or false