Cindy's Car Wash has average variable costs of $2 and average fixed costs of $3 when it produces 100 units of output (car washes). The firm's total cost is
a. $100.
b. $200.
c. $300.
d. $500.
d
You might also like to view...
How does competition affect entrepreneurs?
A. Raises prices for consumers B. Lowers the cost to produce goods C. Lowers prices for consumers D. Nothing, entrepreneurs do not face competition the same way as businesses
Within the framework of the aggregate expenditures model, which of the following is true?
a. When spending on goods and services exceeds the level business decision makers anticipated, inventories will rise. b. Equilibrium will always occur at the full-employment level of output. c. A nation's imports will decline as the nation's disposable income increases. d. When spending on goods and services exceeds the level of aggregate output, inventories will fall.
Which of the following defines total profit?
a. average revenue minus average cost b. marginal cost times output c. marginal revenue minus marginal cost d. total revenue minus total cost e. average cost divided by output
Requiring a firm with international operations to follow the standards of its home country instead of those of the foreign country has all of the following advantages EXCEPT
A) it takes care of the fear of a race-to-the-bottom by making it impossible for a home-based company to exploit low standards.
B) it shifts the costs of improved standards to firms and consumers in high-income countries.
C) it removes the threat of domestic firms relocating abroad for low standards and ensures that any relocation that takes place is due to foreign comparative advantage.
D) it avoids the problems of high-income countries dictating what standards are to be used. In this situation, firms that cross national boundaries must conform to whichever standards are higher.
E) it is a comprehensive measure, since it addresses the problem of production in foreign firms as well as firms from high-standards countries that relocate abroad.