In a perfectly competitive market in which all firms are maximizing their economic profits, the demand and supply curves intersect at a price of $10. From this we know that each
A. firm's average total cost of producing the good is $10.
B. firm is earning positive economic profits at a price of $8 or more.
C. firm's average variable cost of producing the good is $10.
D. firm's marginal cost of producing the good is $10.
Answer: D
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The filing status of an unmarried single parent living with another person is likely to be
A. married filing jointly. B. single head of household. C. single. D. married filing separately.
If autonomous investment increases by $200 billion and the marginal propensity to consume (MPC) is 0.5, then
A) real Gross Domestic Product (GDP) will rise by $100 billion. B) real Gross Domestic Product (GDP) will rise by $200 billion. C) real Gross Domestic Product (GDP) will rise by $400 billion. D) real Gross Domestic Product (GDP) will decrease by $100 billion.
Some critics have argued that moving children to private schools might reduce the _________ of education.
A. pure public goods aspect B. positive externalities C. size of library holdings D. size of teachers unions influence
Figure 2.1Refer to Figure 2.1. What is the opportunity cost of increasing production of manufactured products from 500 tons to 600 tons per year?
A. 200 tons of agricultural products per year B. 400 tons of agricultural products per year C. 500 tons of agricultural products per year D. 600 tons of agricultural products per year