A firm produces 4,000 units of output using 500 workers. Marginal cost is $10, the wage rate is $160, and total fixed cost is $100,000.When output is 4,000 units,
A. average variable cost is decreasing.
B. average total cost is increasing.
C. average total cost is decreasing.
D. average variable cost is increasing.
E. both a and c
Answer: E
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Your classmates from the University of Chicago are planning to go to Miami for spring break, and you are undecided about whether you should go with them. The round-trip airfares are $600, but you have a frequent-flyer coupon worth $500 that you could use to pay part of the airfare. All other costs for the vacation are exactly $900. The most you would be willing to pay for the trip is $1400. Your only alternative use for your frequent-flyer coupon is for your trip to Atlanta two weeks after the break to attend your sister's graduation, which your parents are forcing you to attend. The Chicago-Atlanta round-trip airfares are $450. If you do not use the frequent-flyer coupon to fly to Miami, should you go to Miami?
A. Yes, your benefit is equal to your cost. B. Yes, your benefit is more than your cost. C. No, your benefit is less than your cost. D. No, because there are no benefits in the trip.
Write an essay on the Leontief Paradox. Include in your discussion what Leontief found that was so paradoxical as well as a brief description of several of the various reconciliations that have been offered to explain the Paradox
What will be an ideal response?
What happens when an innovation has positive externalities?
a. The cost of innovation will increase. b. There will be more innovation than needed. c. There will be less innovation than needed. d. The cost of innovation will decrease.
An important factor in stock prices that is separate from interest rates and profit expectations is
A. Securities and Exchange Commission mandates on stock prices. B. the expected price of the stock in the near future. C. Board of Directors' mandates on stock prices. D. CEO desires.