If a firm has a fixed cost of $200,000, and a variable cost of $130,000 at an output of one, how much is marginal cost at an output of one?
A. $70,000
B. $130,000
C. $200,000
D. $270,000
B. $130,000
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A pure monopoly will find that marginal revenue ________.
A. is less than price B. exceeds price C. is identical to price D. is sometimes greater and sometimes less than price
A manager invests $400,000 in a technology that should reduce the overall costs of production. The company managed to reduce their cost per unit from $2 to $1.85 . After the investment has been made, the $400,000 investment is
a. Considered sunk costs, not relevant in further decision making b. Considered sunk costs, but still relevant in further decision making c. Considered a loss d. Considered a profit
Which of the following is a merit good?
A. Food. B. Cigarettes. C. Local telephone service. D. A computer operating system.
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, as the economy moves from Point D to Point B, the opportunity cost of hybrid cars, measured in terms of motorcycles,
A. initially increases, then decreases. B. increases. C. remains constant. D. decreases.