Suppose you operate a factory that produces gadgets. Your current output is 1,000 gadgets. If your fixed cost is $10,000 and your total cost is $50,000, the:
A. average total cost of production is $500.
B. average variable cost of production is $50.
C. average variable cost of production is $40.
D. marginal cost of production is $40,000.
Answer: C
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OPEC is an example of a:
A. monopsony. B. monopoly. C. duopoly. D. cartel.
In the basic Keynesian model, a decrease in government purchases:
A. reduces potential output. B. increases potential output. C. increases short-run equilibrium output. D. reduces short-run equilibrium output.
A decrease in the required reserve ratio will:
A. decrease commercial bank loans and reduce the money supply. B. increase commercial bank loans and reduce the money supply. C. increase commercial bank loans and increase the money supply. D. decrease commercial bank loans and increase the money supply.
The Federal Trade Commission was created to study industry structures and behavior and identify anticompetitive practices.
Answer the following statement true (T) or false (F)