A firm sells 300,00 . units per week. It charges $ 35 per unit, the average variable costs are $ 40, and the average costs are $ 55, the firm should
a. Shut-down as the firm is making a loss of $15 million per week
b. Shut-down as the firm cannot cover the variable costs
c. Both a and b
d. None of the above
b
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The absolute value of the slope of the production possibilities frontier at the production point provides a measure of both the relative price of S in terms of T and the opportunity cost of producing one more units of S calculated in terms of output
of T foregone. Indicate whether the statement is true or false
Federal, state, and local taxes
A. have been falling as a share of GDP since the 1970s. B. have been increasing as a share of GDP since the 1970s. C. are about a quarter of GDP. D. are about one-third of GDP.
A monopoly will look for opportunities to price discriminate because the practice
A. leads to greater profits. B. allows it to charge higher prices. C. leads to selling more units. D. is desired by customers.
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, Point A necessarily represents
A. only hybrid cars being produced. B. an unattainable production point. C. what society wants. D. the economy's optimal production point.