Refer to the short-run information provided in Figure 8.5 below to answer the question(s) that follow. 
Figure 8.5 Refer to Figure 8.5. If no drones are produced, total variable costs are
A. $0.
B. $25.
C. $50.
D. indeterminate from this information.
Answer: A
You might also like to view...
According to the Coase theorem, which of the following are necessary for the efficient levels of pollution to be achieved? I. Property rights are defined. II. Transactions costs are low
A) I only B) II only C) both I and II D) neither I nor II
The marginal propensity to consume is
a. the change in income divided by the change in consumption b. consumption spending divided by income c. income divided by consumption spending d. the change in consumption divided by the change in income e. the change in consumption divided by income
The short-run market supply curve in a price-taker industry equals the horizontal sum of the individual firm's
a. MC curves above AVC. b. AVC curves above marginal revenue. c. MC curves above ATC. d. MC curves between AVC and ATC.
An excise tax is imposed on smartphones. If the elasticity of demand is 2 and the elasticity of supply is 1, we can predict that:
A. sellers will bear 2/3 of the tax burden. B. sellers will bear the full tax burden. C. consumers will bear 2/3 of the tax burden. D. consumers will bear the full tax burden.