The Framing Gallery frames posters. The Framing Gallery has total fixed costs of $500. The Framing Gallery's average variable cost is $20 and its average total cost is $25. The Framing Gallery is currently framing
A. 5 posters.
B. 25 posters.
C. 100 posters.
D. a number of posters that is indeterminate from this information.
Answer: C
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What is meant by increasing returns to scale?
What will be an ideal response?
When banks offer borrowers smaller loans than they have requested, banks are said to
A) shave credit. B) rediscount the loan. C) raze credit. D) ration credit.
Suppose the CPI was 95 in 1955, and suppose currently the CPI is 475 . According to the CPI, $100 today purchases the same amount of goods and services as
a. $20.00 purchased in 1955. b. $33.33 purchased in 1955. c. $47.50 purchased in 1955. d. None of the above is correct.
(Figure: The Demand Curve) Look again at the figure The Demand Curve. Using the midpoint method, the price elasticity of demand between $6 and $8 is approximately:
A) 4.5. B) 2.33. C) 0.23. D) 0.45.