In the long run, if 1,000 units are produced at a cost of $8,000 and 1,200 units at a cost of $9,200, then over this range of output there are
A) constant economies of scale.
B) constant returns to scale.
C) diseconomies of scale.
D) economies of scale.
E) constant diseconomies of scale.
D
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Use the figure below to answer the following question. The equilibrium point in the market is the point at which the S and D curves intersect.
At equilibrium, the producer surplus would be represented by the area
A. b. B. b + c + d. C. a. D. a + b.
This month, the local widget factory produced 100 widgets. The total variable cost of production was $500 and the average total cost of production was $8
a. What is the total cost? b. What is the total fixed cost? c. What is the average fixed cost? d. What is the average variable cost?
In the foreign exchange market, the higher the dollar's exchange rate, the
A) larger the supply of dollars. B) smaller the quantity supplied of dollars. C) smaller the supply of dollars. D) larger the quantity supplied of dollars.
Just like a monopolist, a monopolistically competitive firm:
A. cannot sell additional units of output without lowering the price. B. is a price taker. C. sets the price according to marginal revenue and marginal cost; the demand curve doesn't matter. D. faces a perfectly elastic demand curve.