Given the table below, what is the marginal cost of the 250th unit of output? 
A. $4.00
B. $0.14
C. $7.40
D. $2.40
E. none of the above
Answer: C
You might also like to view...
Could an increase in urban bus fares eventually lead to an increase in the demand for bus service?
A) It could not do so, though it could lead to a reduction in the demand for bus service. B) It could not do so, though it would probably lead to a reduction in the quantity of bus service demanded. C) It might do so if increasing the demand for and price of downtown parking increased even more. D) It might do so by making the demand for bus service unit elastic. E) Only in cities where the demand for bus service slopes upward to the right.
Positive economic profits in a perfectly competitive market imply that:
A) producers are earning more than their opportunity cost. B) existing firms are likely to leave the market. C) the cost of production is equalized across producers. D) government intervention is required to stabilize the market.
At Revolution Doughnuts in Fort Collins, Colorado, a cup of coffee or a doughnut is $1. Suppose Hannah loves going to Revolution Doughnuts and usually buys 2 doughnuts and 1 cup of coffee
On the way to the shop, Hannah finds an extra $2 dollars in change in her car and buys an extra doughnut and cup of coffee. This means A) doughnuts are an inferior good and coffee is a normal good for Hannah. B) doughnuts are a normal good and coffee is an inferior good for Hannah. C) doughnuts and coffee are normal goods for Hannah. D) doughnuts and coffee are inferior goods for Hannah.
Suits Only, a dry cleaning firm that specializes in cleaning business suits, operates in a perfectly competitive market. Robin Smith, an exceptionally talented manager, has been hired to manage Suits Only. In the dry cleaning business, a manager typically makes a salary of $400 per week. Suits Only faces the long-run average and marginal costs shown in the figure below. In long-run competitive equilibrium, the market price for cleaning a business suit is $4.50.
Given the above, if Robin Smith buys Suits Only and continues to manage it herself, she will
A. earn $75 in economic rent per week. B. earn zero economic profit. C. earn $75 in economic profit each week. D. both a and b.