A monopolistic competitor has fixed costs of $100 and marginal costs of $10 per unit. What is its average cost of producing 100 units?
a. $10
b. $11
c. $1,100
d. $2,000
Ans: b. $11
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What is an economy?
What will be an ideal response?
The Sherman Antitrust Act of 1890
a. immediately reduced the number of trusts and the incidence of anticompetitive behavior b. established the Antitrust Division of the Department of Justice c. did not apply to farmers d. was not fully enforced at first e. prohibited price discrimination
Subsidies are payments made by the government of a country to:
a. foreign firms to encourage imports. b. foreign firms to encourage domestic exports. c. domestic firms to encourage exports. d. domestic firms to encourage imports. e. domestic firms to ensure domestic consumption of their goods.
In a representative labor market,
a. the wage adjusts to balance the supply and demand for labor. b. the wage equals the value of the marginal product of labor. c. an increase in the supply of labor increases the equilibrium wage. d. Both a and b are correct.