What is the difference between between total costs, variable costs, and fixed costs?
What will be an ideal response?
Total costs are the costs of all inputs a firm uses in production. Variable costs are costs that change as output changes. Fixed costs are costs that remain constant as output changes. Total cost is equal to the sum of variable costs and fixed costs.
You might also like to view...
A monopoly that price discriminates ______
A. benefits buyers because it offers the good at a variety of prices B. gains because it converts consumer surplus to economic profit C. uses resources more efficiently than would a competitive market D. enables buyers to maximize their consumer surplus
Explain the problems that necessitate insurance management, and three methods insurance companies use to address these problems. Identify the problem that each practice addresses
What will be an ideal response?
Panel data estimation can sometimes be used
A) to avoid the problems associated with misspecified functional forms. B) in case the sum of residuals is not zero. C) in the case of omitted variable bias when data on the omitted variable is not available. D) to counter sample selection bias.
If a local shop buys a used motorcycle for $1,000, makes repairs and refurbishes it, then resells it for $2,500, the
a. shop contributes value added equal to $1,500, but nothing is added to GDP. b. shop contributes value added equal to $1,500, and consequently $1,500 is added to GDP. c. shop contributes nothing to production because only existing goods are involved. d. shop contributes value added equal to $2,500, but only $1,500 is added to GDP.