A catering company is producing at a point where its marginal costs are $25 and its fixed costs are $5000 . At the current price of $10 it is producing 50 meals. If the demand goes up, such that they can now charge $20 per meal, how much should the firm now produce?
a. 60 meals
b. 70 meals
c. 80 meals
d. None, they should shut down
d
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Uni-Go Company makes motorized unicycles. Uni-Go is deciding whether to include a safety feature that would cost $6 for each unicycle
Uni-Go estimates the probability of death without the safety feature is 1/90,000 and the death cost per unicycle is $5.55. Uni-Go's cost-benefit recommendation is to A) add the safety device. B) not add the safety device. C) add the safety device plus additional safety devices. D) not produce the unicycle.
Total fixed cost
A. varies with the level of output. B. has a downward-sloping curve. C. has an upward-sloping curve. D. is constant at all levels of output.
Suppose total government spending is increased permanently by ten percent, with no change in tax rates. In the long run, the resulting deficit will disappear, ________
A) only if government spending is brought back down to the original level B) if economic growth raises tax revenue by ten percent C) if the government debt is sold to foreigners D) unless the money is spent entirely on government consumption
Checkable deposits are:
A. Debts of commercial banks and savings institutions B. Debts of the Federal government and government agencies C. Assets of the Federal government and government agencies D. Assets of commercial banks and savings institutions