Suppose Sarah owns a small company that makes wedding cakes. The accompanying table shows how Sarah's total cost varies depending on the number of wedding cakes she makes each day.Number of Cakes Per DayTotal Cost Per Day0$1001$1802$2203$3004$4005$5206$660Â When Sarah produces 2 cakes per day, her average variable cost is ________.
A. $60
B. $100
C. $120
D. $110
Answer: A
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If the quantity supplied is infinitely responsive to any change in price, the supply curve has a price elasticity of supply equal to infinity.
Answer the following statement true (T) or false (F)
In a long-run equilibrium in a monopolistically competitive industry that produces information products, revenues are equal to the ________ costs of developing, producing, and selling the product.
A. variable B. fixed C. total D. marginal
Which of the following demonstrates the law of supply? a. When leather became more expensive, belt producers decreased their supply of belts
b. When car production technology improved, car producers increased their supply of cars. c. When sweater producers expected sweater prices to rise in the near future, they decreased their current supply of sweaters. d. When lemon prices rose, lemon growers increased their quantity supplied of lemons.
The prisoners’ dilemma is a famous game that demonstrates the basic problem confronting ______.
a. colluding oligopolists b. cartels c. non-colluding oligopolists d. perfect competitors