At the output rate at which diminishing marginal product begins, a firm will experience
A) constant average total costs.
B) increasing average fixed costs.
C) increasing marginal costs.
D) decreasing average variable costs.
Answer: C
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Linder's hypothesis says that countries with ________ of preferences will trade intensively with each other
A) differences B) utility C) similarity D) elasticity
Refer to Table 11.1. What is the value of net exports or the trade balance?
A) $300. B) -$300. C) $1,700. D) -$1,700.
If the price exceeds the average variable cost but is less than the average total cost, a firm
A) should further differentiate its product. B) should stay in business for a while longer until its fixed costs expire. C) is making some profit but less than maximum profit. D) should shut down.
Assume that in the short run a firm is producing 100 units of output, has average total costs of $100, and average fixed costs of $20. The firm's total variable cost at this output level is
A) $120. B) $80. C) $8,000. D) $12,000.