If the total cost of production for 1000 widgets is $2000 and marginal cost is constant at $1, what is the average cost if 2000 widgets are produced?
A) $2
B) $1.50
C) $1
D) $0.50
B
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Starting from long-run equilibrium, a large increase in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; potential B. recessionary; higher; potential C. recessionary; lower; lower D. expansionary; higher; higher
A financial asset is considered ________ if it can be sold in a secondary market
A) durable B) a security C) a liability D) a commodity
If a price ceiling is not binding, then it will have no effect on the market
a. True b. False Indicate whether the statement is true or false
Which of these situations limit the use of ownership in resolving incentive problems?
A. The employees are well trained and highly qualified. B. The employees lack full control over their output. C. The employees try to maximize their personal utility. D. The actions of employees are unobservable.