The manager of Greene Enterprises, Inc., recently estimated its average variable cost (AVC) function to beAVC = 88 - 0.026Q + 0.000003Q2Greene Enterprises faces total fixed costs (TFC) of $300,000. When Greene's output is 2,000 units, what is short-run marginal cost (SMC)?
A. $20
B. $90
C. $42
D. $100
E. $72
Answer: A
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Demand-side inflation is normally accompanied by
A. falling real GDP, while supply-side inflation may be accompanied by rising real GDP. B. falling real GDP; the same is true of supply-side inflation. C. rising real GDP, while supply-side inflation may be accompanied by falling real GDP. D. rising real GDP; the same is true of supply-side inflation.
Suppose a market produces 5,000 tons of wheat. At this quantity, the marginal cost exceeds the marginal benefit. This outcome could be the result of
A) a quantity regulation limiting the amount that can be produced. B) a monopoly. C) a subsidy. D) an external benefit. E) producing a public good.
Once active discrimination ends, it:
A. is quickly forgotten, and efficiency is reached. B. no longer affects people or markets. C. can have long-lasting effects on people and markets. D. None of these is true.
Relating to the Economics in Practice on page 374: Considerable evidence suggests that recently in the United States,________ has increased and ________ has stagnated.
A. the real wage; the nominal wage B. the real wage for women; the real wage for men C. executive compensation; the real wage of the average worker D. the nominal wage of the average worker; executive compensation