Figure 7-7
In Figure 7-7 at 100 units, FC equals
A. 1,000.
B. 1,800.
C. 800.
D. 80.
Answer: A
You might also like to view...
A firm with two or more owners who have unlimited liability is known as
A) a partnership. B) a proprietorship. C) a corporation. D) an establishment.
The basic difference between a tariff and quota is that:
a. quota can be imposed both on imports and exports whereas a tariff can be imposed only on imports. b. quota yields revenue to the government whereas tariff does not yield any revenue. c. tariff reduces the import of the goods with greater certainty than quota as the amount of import restricted by quota depends on the price elasticity of demand for importable. d. tariff is a quantitative restriction on imports whereas quota is an import duty. e. a tariff raises the price of the product only in the domestic market whereas with a quota, both domestic and foreign producers receive a higher price.
Economies of scale are indicated by:
A. the rising segment of the average variable cost curve. B. the declining segment of the long-run average total cost curve. C. the difference between total revenue and total cost. D. a rising marginal cost curve.
A monopolistically competitive firm earning profits in the short run will find the demand for its product decreasing and becoming more elastic in the long run as new firms move into the industry until
A) the original firm is driven into bankruptcy. B) the firm's demand curve is perfectly elastic. C) the firm's demand curve is tangent to its average total cost curve. D) the firm exits the market.