Total fixed cost for a firm is €25. The variable cost to the firm to produce 1 unit is €10. The marginal cost of producing the first unit is:
(a) €10.
(b) €15.
(c) €25.
(d) €35.
Answer: (d) €35.
You might also like to view...
The process of changing a technology to fit local resources is
a. invention b. adaptation c. innovation d. technology transfer e. all of the above
During World War II (1941–45), Engel's law applied. As income rose, consumption of food dropped relative to all other goods and services purchased
Indicate whether the statement is true or false
According to Chandler (1977), the major event in business development in 1895–1904 was
(a) the Granger cases. (b) Munn v Illinois (1877). (c) the rise of vertically integrated firms. (d) the merger wave.
A tit-for-tat strategy in a two-firm balanced oligopoly results in
a. A Nash equilibrium b. one firm setting price and announcing that it would match whatever price its rival firm charges c. both firms competing as if the market were perfectly competitive d. both firms colluding to set and maintain relatively high prices e. one firms punishing its rival for setting price above its own