Total cost is broken down into two components:
A. average cost and marginal cost.
B. variable cost and marginal cost.
C. variable cost and fixed cost.
D. average cost and fixed cost.
Answer: C
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If a negative externality exists, __________ in order for the socially optimal output to be reached.
A. supply needs to increase B. supply needs to decrease C. demand needs to increase D. b and c E. none of the above
Assume that one laborer produces 6 units of output, two laborers produce 14 units, three produce 20 units, and four produce 24 units. If the cost is $20 per unit of labor and fixed costs are $100, what is the average total cost of producing 14 units of output?
a. $50 b. $20 c. $10 d. $100 e. $40
What are the two basic principles of aggregation?
Archer Daniels Midland (ADM) was convicted for this anticompetitive practice in the lysine market.
A. Price fixing B. Predatory pricing C. Bundling D. Exclusive supply contracts