If a firm's total fixed costs are $30, the firm's marginal cost of producing the first unit of output is $30, and the average total cost of producing two units of output is $42, the marginal cost of the second unit of output is:
A. $84.
B. $54.
C. $42.
D. $24.
Answer: D
You might also like to view...
If people expect the future exchange rate for dollars will be lower, then in the foreign exchange market the current
A) quantity demanded of dollars decreases. B) demand for dollars decreases. C) quantity demanded of dollars increases. D) demand for dollars increases. E) supply of dollars decreases.
The major objective of the Federal Reserve System is to: a. make substantial profits for its member banks
b. help in generating stabilization policies for the economy. c. distribute paper money and coins to banks and retail stores. d. prevent closure (failure) of individual member banks.
If the FOMC decides that the Fed should buy bonds it
A. requires the permission of the Financial Oversight Committee. B. requires the President's signature on the buy order. C. instructs the New York Federal Reserve Bank's trading desk to buy them. D. asks the Congress for permission to buy them.
The employees of Aunt Smith's cookies are on strike. Jane has decided not to shop at any store that is still selling Aunt Smith's cookies. This is known as
A) a closed shop. B) a union shop. C) a sympathy strike. D) a secondary boycott.