A firm is producing 200 units of output at a total cost of $1,000 . The firm's average variable cost equals $4 per unit. Total fixed cost:
a. equals $1,000.
b. equals $800
c. equals $200.
d. equals $2.
c
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How is the concept of present value useful in deciding whether or not to undertake an investment project?
What will be an ideal response?
Exhibit 3-5 Supply for Tucker's Cola Data Quantity supplied per week(millions of gallons) Price pergallon 6 $3.00 5 2.50 4 2.00 3 1.50 2 1.00 1 .50 Exhibit 3-5 shows the supply schedule for Tucker's Cola. If Tucker's Cola and Refresh Cola are the only two suppliers in the cola market and Refresh Cola is willing to sell 5 million gallons when the price is $3.00, 4 million gallons when the price is $2.50, 3 million gallons when the price is $2.00, 2 million gallons when the price is $1.50, 1 million gallons when the price is $1.00, and 0 gallons when the price is $0.50 or less,
A. the market quantity supplied of cola will be 7 million gallons when the price is $2.00. B. Tucker's Cola follows the law of supply, but Refresh Cola does not. C. the market quantity supplied of cola is decreasing as price increases. D. the market supply curve is horizontal.
If pollutants from smoke stacks in a city such as Newark causes people to paint their homes and cars more frequently, this implies
A) external benefits to the home and car owners. B) external costs on home and car owners. C) internal cost to home and car owners. D) none of the above.
The supply of loanable funds has a ________ slope because the greater the interest rate, the ________ the reward to saving, and the ________ the quantity of loanable funds supplied
A) positive; lesser; lesser B) positive; greater; lesser C) negative; lesser; greater D) positive; greater; greater