The Farley Farm, a dairy company, has total costs of $15,000 and total variable costs of $2,000. The Farley Farm's total fixed costs are
A. $0.
B. $13,000.
C. $17,000.
D. indeterminate because the firm's output level is not known.
Answer: B
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In the figure above, suppose the price of a pound of pecans is negatively related to the quantity of peanuts that farmers are willing to supply. If the price of pecans increases
A) the curve will shift rightward. B) the curve will shift leftward. C) there is a movement along the curve. D) the curve will be unaffected.
Acquiring a supplier because it becomes more profitable
a. will raise the asking price to offset any increase in cash flow over time b. will increase your profits c. will decrease your profits d. will make you alter operations
Of the 39 million Americans living in poverty, _______________ are children.
A. one-quarter B. 10 percent C. less than half D. more than half
For a monopoly, when the price effect outweighs the quantity effect of increased production:
A. the demand must be price inelastic. B. marginal revenue must be increasing. C. total revenues will increase. D. All of these statements are true.