You have just won a ticket to see John Mayer in concert this Saturday evening. Nevertheless, it would cost you around $20 in transportation costs to go to the concert since you would have to drive to the neighboring city (where the concert is taking place). Tickets for the concert are selling for $100 in your town. Assuming you only work Monday-Fridays, the cost of going to the concert is:
A. $0
B. $80
C. $120
D. $100
Answer: C
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Car A gets 20 miles per gallon, and sells for $17,000. Car B gets 40 miles per gallon, and sells for $34,000. In the economic way of thinking, which car is more efficient?
A) Car A B) Car B C) Both are equally efficient. D) It depends on the car buyer's estimate of cost and benefit. E) It depends on a number of statistical tests done by economists, the results of which are not stated in the question.
If the price of automobiles was to increase, then
A) the quantity of gasoline demanded would decrease. B) the demand for gasoline would increase. C) the demand for gasoline would decrease. D) the supply of gasoline would increase.
Refer to Scenario 5.10. If Hillary invests 30 percent of her savings in the real estate project and the remainder in Treasury bills, the expected return on her portfolio is:
A) 4 percent. B) 11.8 percent. C) 17 percent. D) 22.2 percent. E) 30 percent.
Average fixed costs
A. provide a per unit measure of costs. B. fall as output rises. C. reach their minimum at the output level where the average fixed cost curve is intersected by the marginal cost curve. D. are the costs associated with producing an additional unit of output.