If the first copy cost of a music video is $223,000 and the marginal cost is $0, then as the firm produces an infinite quantity of the video, the average total cost of producing the video will approach:
A. zero.
B. $1.00.
C. $2,230.
D. $1 million.
Answer: A
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The government collects tax revenue of $100 million and has $105 million in outlays. The budget balance is a
A) surplus of $5 million. B) deficit of $5 million. C) surplus of $105 million. D) deficit of $105 million. E) surplus of $100 million and a deficit of $105 million.
Suppose the market demand curve for cable internet service is completely elastic. At the market equilibrium price under perfect competition, the consumer surplus in this market equals:
A) total consumer expenditures. B) total sales revenue. C) zero. D) an amount slightly more than total consumer expenditure.
In the short run both the monopolistically competitive firm and the perfectly competitive firm will charge a price equal to marginal cost
a. True b. False Indicate whether the statement is true or false
Marginal revenue is
a. the change in total revenue divided by total output b. total revenue divided by total output c. total revenue minus total cost then divided by total output d. the change in total revenue divided by the change in price of output e. the change in total revenue divided by the change in total output