In the short run, the marginal cost of the first unit of output is $40, the average variable cost of producing three units of output is $32, and the marginal cost of producing the second unit of output is $32. What is the marginal cost of producing the third unit of output?
A. $24
B. $32
C. $40
D. $96
Answer: A
You might also like to view...
During the financial crisis of 2007-2009,
A) mortgage-backed securities became more liquid. B) information costs of mortgage-backed securities rose. C) information costs of mortgage-backed securities declined. D) the tax treatment of mortgage-backed securities was changed.
According to the Bureau of Economic Analysis (BEA), personal consumption expenditures grew at an annualized rate of 0.5% in August 2012, and this increase in spending was accompanied by income growth
If you were building a macroeconomic model that explores the effect of the growth in income on the increase in consumer spending, the growth in income would be an ________ variable and the increase in consumer spending would be an ________ variable. A) endogenous; endogenous B) endogenous; exogenous C) exogenous; exogenous D) exogenous; endogenous
Collusion is:
A. more likely when the threat of market entry is missing. B. more likely in perfectly competitive markets. C. less likely when the threat of market entry is missing. D. not affected by firm’s ability to enter a market.
Collusion is a situation where businesses:
A. act in their own self-interest and ignore what the other businesses are doing. B. have noncooperative outcomes, because they compete outside the public eye. C. agree to cooperate, and the U.S. government works hard to encourage this behavior. D. agree to cooperate, and their behavior does not serve the public interest.