A firm is producing 100 racing bicycles at a total cost of $84,000. The firm's fixed cost is $24,000. What is the average variable cost?

a. $840
b. $640
c. $600
d. $240


Ans: c. $600

Economics

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What will be an ideal response?

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The revealed preference approach refers to:

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Economics

This graph shows the cost and revenue curves faced by a monopoly. According to the graph, if the perfectly competitive outcome and monopoly outcome are compared, we can see that the:

A. monopoly creates deadweight loss. B. monopolist would charge P3 and the perfectly competitive firm would charge P1. C. perfectly competitive firm would lose money in this industry. D. perfectly competitive firm would produce Q1 units.

Economics

What is the output effect?

What will be an ideal response?

Economics