The average variable cost of producing ice cream sundaes are minimized when 100 sundaes are produced. The total cost of producing 100 sundaes is $500. If fixed cost of production is $200, what is the marginal cost of producing the 100th sundae?
A. $2
B. $3
C. $5
D. indeterminate from the given information
Answer: B
You might also like to view...
Refer to the table. Suppose the legal reserve requirement is 10 percent and initially there are no excess reserves in the banking system. If the Fed wished to reduce the interest rate by 1 percentage point, it would:
A. sell $10 of government bonds in the open market.
B. buy $100 of government bonds in the open market.
C. sell $100 of government bonds in the open market.
D. buy $10 of government bonds in the open market.
When a country exports a good, the country's producer surplus ________, consumer surplus ________, and the country ________ from the trade
A) increases; increases; gains B) decreases; increases; gains C) increases; decreases; gains D) decreases; decreases; loses E) increases; decreases; loses
Which of the following types of government spending is included in the calculation of GDP?
A. Federal, state, and local government spending for any purpose. B. Federal spending only. C. Federal, state, and local spending on transfer payments only. D. Federal, state, and local government spending on goods and services only.
Queuing is a way to ration goods
A. through the use of political power. B. through prices. C. through markets. D. on a first-come, first-serve basis.