If a firm produces 20 units of output and incurs a total cost of $1,000 and a variable cost is $700, calculate the firm's average fixed cost of production if it expands output to 25 units
A) $300
B) $15
C) $12
D) It is impossible to determine without additional information.
Answer: C
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According to the quantity theory, in the long run, an increase in the growth rate of ________ leads to an increase in the ________
A) real GDP; inflation rate B) the quantity of money; growth rate of real GDP C) the quantity of money; inflation rate D) real GDP; growth rate of velocity
Some nations are increasing the amount of land covered by forests, while others are experiencing rapid deforestation. According to economists, this is largely because:
A. different nations have different ethical views regarding treatment of the environment. B. nations with increasing forest cover have poorly enforced or nonexistent property rights. C. nations with declining forest cover treat forests as private property or strictly regulated government property. D. nations with increasing forest cover treat forests as private property or strictly regulated government property.
If the quantity demanded of a product is the same for each possible price, demand is
A. perfectly elastic. B. perfectly inelastic. C. unit-elastic. D. elastic.
A highly active role by government may be needed to promote economic growth in low-income DVCs because of:
A. a lack of infrastructure. B. rigid law enforcement in the country. C. excessive local entrepreneurship. D. all these reasons.