If the first copy cost of a music video is $223,000 and the marginal cost is $0, how much is the average total cost if the firm produces 1 million copies?
A. 22.3 cents
B. 0.223 cents
C. 1,223,000
D. 223,000,000,000
Answer: A
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The multiplier helps explain
A) why a decrease in taxes causes real Gross Domestic Product (GDP) to fall by more than the amount of the decrease in taxes. B) why an increase in disposable income causes real Gross Domestic Product (GDP) to rise by less than the amount of the increase in disposable income. C) why a rise in government expenditures causes real Gross Domestic Product (GDP) to rise by more than the amount of the increase in government spending. D) why a fall in investment cause real Gross Domestic Product (GDP) to rise by more than the amount of the decrease in investment.
In the HO model, reciprocal demand leads to an equilibrium price by inducing changes in both demand and supply
Indicate whether the statement is true or false
Which of the following is true of fiscal policy before the Great Depression of the 1930s?
a. Fiscal policy was made at the federal level. b. Policies associated with national defense were made at the state level. c. Environmental degradation and education were the focus areas of the federal government while other areas of government policy were dealt by individual states. d. The federal budget was determined mostly by economists and not by politicians. e. National defense and foreign trade were the focus areas of the federal government while other areas of government policy were dealt by individual states.
Assume six firms comprising an industry have market shares of 30, 30, 10, 10, 10, and 10 percent. The Herfindahl index for this industry is:
A. 2,000. B. 1,600. C. 2,200. D. 80.