A firm's total variable cost (TVC) is defined as a cost that
A) does not change (is not "variable") as the firm changes its output.
B) changes as the firm changes its output.
C) falls as the firm increases its output.
D) varies only when the firm reaches the long run.
B
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Refer to Figure 19-7. At what level should the Indian government peg its currency to the dollar to make U.S. imports cheaper in India?
A) less than $.02/rupee B) equal to $.02/rupee C) greater than $.02/rupee D) $1/rupee
From the Keynesian perspective, when during a recession the quantity supplied is greater than the quantity demanded in the market for some goods and services, there is
A) a decline in potential GDP. B) a decline in potential GDP relative to real GDP. C) a decline in real GDP relative to both nominal GDP and potential GDP. D) a decline in real GDP relative to potential GDP.
A firm receives $10 per unit at an equilibrium level of output of 80 units. The average total cost at 80 units of output is $8 . The firm makes a total economic profit of:
a. $120. b. $160. c. $100 d. $80
Wanda owns a lemonade stand. She produces lemonade using five inputs: water, sugar, lemons, paper cups, and labor. Her costs per glass are as follows: $0.01 for water, $0.02 for sugar, $0.03 for lemons, $0.02 for cups, and $0.10 for the opportunity cost of her labor. She can sell 300 glasses for $0.50 each. What are Wanda's total economic costs per glass?
a. $0.18 b. $0.10 c. $0.08 d. $0.02