Suppose that a firm is currently producing 500 units of output. At this level of output, AVC is $1 per unit, and TFC is $500. What is the firm's TC?
A. $1,000
B. $501
C. $1,500
D. $500
Answer: A
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The current worth of future income after it is discounted, to reflect the fact that future dollars are worth less than current dollars, is called
a. the net present value of the income. b. arbitrage. c. the inflationary premium. d. the real interest rate.
Figure 11-9
In Figure 11-9, how much more than the short-run competitive price will the profit-maximizing monopolist charge?
a.
$1
b.
$2
c.
$3
d.
$10
Under a fixed exchange rate system, if the inflation rate of the United States is less than the inflation rate of other nations, the:
A. dollar will not change. B. dollar will appreciate. C. United States will develop a trade deficit. D. United States will develop a trade surplus.
An excise tax
A. is often used to encourage the use of a good. B. is a value added tax (VAT). C. acts as a negative incentive to consume that good or service. D. is illegal in most cities in the United States.