Letters are used to represent the terms used to answer this question: price (P), quantity of output (Q), total cost (TC) and average total cost (ATC). Which of the following equations is equal to a firm's average profit?
A) P - TC B) P - ATC C) (P - ATC) × Q D) (P × Q) - TC
B
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What is the average cost per unit for producing 3 units?
a. 200 b. 260 c. 70 d. 110
Which of the following is a true statement?
A. Fiscal policy has been expansionary every year since 2000. B. Fiscal policy has been contractionary every year since 2000. C. Fiscal policy swung from expansionary to contractionary in 2002. D. Fiscal policy swung from contractionary to expansionary in 2002.
The law of diminishing returns causes a firm's short-run marginal cost curve to be s-shaped
a. True b. False Indicate whether the statement is true or false
The productivity of workers can depend upon which of the following?
A. Physical capital B. population growth C. Number of businesses established D. All of these are determinants of productivity.