If the average cost of producing 10 sweaters is $6.50 and the marginal cost of producing the tenth sweater is $6.75, the average cost of producing 10 sweaters will be:
A. less than $6.50.
B. $6.50.
C. exactly $6.75.
D. more than $6.50.
Answer: D
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Receiving a voucher for an apartment in a public housing project would be an example of a good that satisfies
A) the principle of rival consumption. B) the definition of a public good. C) the definition of a good with a positive externality. D) the nonexclusion principle.
Junk bonds are securities with
a. low risk and low yield. b. high risk and high yield. c. low risk and high yield. d. high risk and low yield.
Refer to the graph shown. The output range in region c is associated with:
A. constant returns to scale. B. diminishing marginal productivity. C. economies of scale. D. diseconomies of scale.
Assume Robbie's Robots operates in a perfectly competitive market producing 3,000 robots per day. At this output level, the selling price is $800 per robot and the marginal cost is $800 per robot. To maximize profits, Robbie's Robots should
A. make no adjustments as they are already maximizing their profits. B. increase their output. C. decrease their output. D. stop producing since it is earning a loss.