In Figure 3.2, what is the variable cost to the producer? 
A. 0BCQ*
B. 0PCQ*
C. BP*C
D. P*AC
Answer: A
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Which of the following will shift the aggregate demand curve to the right?
A. Consumers become more optimistic about the future. B. Income taxes are raised. C. The government reduces purchases to balance the budget. D. Foreign economies fall into recession, reducing their demand for domestic exports.
Small-denomination certificates of deposits are
A) included in M1 and M2. B) included in M2 but not M1. C) included in M1 but not M2. D) included only in M1.
There are five hundred buyers in the market for cheese. If we know each individual's demand curves, to find the market demand, we must
A) multiply the price times quantity for each buyer and then add the resulting products together. B) add the quantities that each buyer will purchase at every price. C) add the prices that each buyer will pay at every quantity. D) average the price each buyer is willing to pay for each given quantity. E) give up because there is no way to find the market demand.
The Phillips curve will shift up with ________ or ________
A) a positive supply shock; an increase in expected inflation B) a positive supply shock; a decrease in expected inflation C) a negative supply shock; an increase in expected inflation D) a negative supply shock; a decrease in expected inflation