Chloe's Café sells gourmet cinnamon rolls. In the long run, the café incurs a total cost of $500 to produce 1,000 cinnamon rolls. If Chloe's Café exhibits constant returns to scale between 1,000 and 1,500 cinnamon rolls, the long-run average total cost for 1,250 cinnamon rolls is
a. higher than $0.50.
b. lower than $0.50.
c. equal to $0.50
d. equal to $500.
c
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When the price of a pizza is quoted in dollars, this is an example of dollars serving as:
A. a store of value. B. a medium of exchange. C. a unit of account. D. barter.
The increase in total cost resulting from producing one more unit of output is called
A. variable cost. B. average total cost. C. opportunity cost. D. marginal cost.
Suppose every good costs $8 per unit and Molly holds $120 . What is the real value of the money she holds?
a. $120 . If the price of goods rises, to maintain the real value of her money holdings she needs to hold more dollars. b. $120 . If the price of goods rises, to maintain the real value of her money holdings she needs to hold fewer dollars. c. 15 units of goods. If the price of goods rises, to maintain the real value of her money holdings she needs to hold more dollars. d. 15 units of goods. If the price of goods rises, to maintain the real value of her money holdings she needs to hold fewer dollars.
Draw a supply curve, S1. Then draw a less elastic supply curve, S2.
