Suppose the nation of Arcadia produces only two goods, teapots and surfboards. If Arcadia produces only teapots, it can make 80 per day. If Arcadia produces only surfboards, it can make 30 per day
What is the opportunity cost of 1 teapot in Arcadia?
A) 3/8 of a surfboard B) 8/3 surfboards C) 30 surfboards D) 80 surfboards
A
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If the market price falls below the average-variable-cost, the firm will suspend production
a. True b. False Indicate whether the statement is true or false
Which of the following is a fixed cost to farmer McDonald?
a. gasoline b. fertilizer c. insurance d. seed
Straker Industries estimated its short-run costs using a U-shaped average variable cost function of the formAVC = a + bQ + cQ2and obtained the following results. Total fixed cost (TFC) at Straker Industries is $1,000. 
If Straker Industries produces 12 units of output, what is estimated total cost (TC)?
A. $4,428 B. $2,348 C. $1,000 D. $1,463
If the price of beef rose and the demand for chicken increased, then beef and chicken are:
a. Substitute goods b. Consumer goods c. Inferior goods d. Complementary goods