Figure 6.1 shows the cost structure of a firm in a perfectly competitive market. If the market price is $40 and the firm is currently producing the profit-maximizing output level, its total variable cost is:

A. $12,500.
B. $14,300.
C. $19,800.
D. $27,000.


Answer: C

Economics

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Is it possible for a country to experience a permanent increase in output per worker over time? If so, how can this occur?

What will be an ideal response?

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Refer to Figure 11.2. Assume the economy is in equilibrium at 1, where real GDP equals potential GDP, and then the economy experiences a positive demand shock. Other things equal, the positive demand shock is best represented by a(n)

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Economics

Answer the following statements true (T) or false (F)

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Economics