Liam notes that if he produces 10 pairs of shoes per day, his average fixed cost (AFC) is $14 and his marginal cost (MC) is $8; if he produces 20 pairs of shoes per day, his MC is $15 . What is his AFC when output is 20 pairs of shoes per day?
a. $5
b. $7
c. $8
d. $15
B
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According to your text, the central economic task for a society is
A) to eliminate scarcity. B) to assure every household gets what it needs. C) to secure cooperation among people in using what is available to obtain what is wanted. D) to train enough economists to ensure supplies of goods and services will successfully continue to meet demands for goods and services in the future.
To avoid the free-rider problem, which of the following goods is best provided by the government and paid for with tax dollars?
A. automobiles B. lighthouses C. bread D. windows
If the asset market is to remain in equilibrium, then if the money supply increases, output is unchanged, the price level is unchanged, and the expected inflation rate is unchanged, then
A. the real interest rate must decline. B. the nominal interest rate must rise. C. the real interest rate must rise. D. the inflation rate must rise.
If monopolistic firms facing similar cost and demand conditions successfully collude, price and output results in this industry will be most accurately predicted by which of the following models?
A. The kinked demand curve model of oligopoly B. The price-leadership model of oligopoly C. The pure monopoly model D. The monopolistic competition model