Assume a firm is currently producing 100 units of output, total fixed costs are $10,000, and average variable costs are $8. Based on this information we can conclude, with certainty, that the firm's:
A) marginal costs are $8.
B) total variable costs are $8000.
C) average fixed costs are $2.
D) total costs are $10,800.
D
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As the rate of interest on borrowed funds increases, the quantity of investment funds demanded diminishes
a. True b. False Indicate whether the statement is true or false
Demand for single occupancy apartments is Qd = 400,000 - 250P. Supply is given by Qs = 200,000 + 250P. Price of an apartment is measured in hundreds of dollars and quantity is measured in thousands of apartments. What is equilibrium rent and quantity of apartments rented?
A. $1,200 and 500,000 apartments, respectively B. $400 and 300,000 apartments, respectively C. $800 and 200,000 apartments, respectively D. $800 and 400,000 apartments, respectively
If the opportunity costs of producing a good increase as more of that good is produced, the economy's production possibility frontier will be
A. a negatively sloped straight line. B. negatively sloped and "bowed inward" toward the origin. C. negatively sloped and "bowed outward" from the origin. D. a positively sloped straight line.
According to Okun's law, if output grew 7% and full-employment output rose 5%, what would be the change in the unemployment rate?
A. -1 percentage point B. 1 percentage point C. 4 percentage points D. -4 percentage points