If a firm's long-run average total curve shows that it can produce 5,000 DVDs at an average cost of $2.00 and 15,000 DVDs at an average cost of $1.50, this is evidence of
A) economies of scale. B) the law of supply.
C) diminishing returns. D) diseconomies of scale.
A
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In the short run, a competitive firm will
a. Will produce a quantity where AC = MR. b. Will produce a quantity where AVC = MR. c. Will produce a quantity where MC = MR. d. Will shut down if price falls below the minimum of average costs.
The figure above shows Sally's budget line and one of her indifference curves. At point a, Sally's marginal rate of substitution is ________
A) 1/4 B) 4 C) 10 D) 40
Redbox rents DVDs for $1 per day via self-service kiosks located across the United States. The CFO of Redbox wants to identify how responsive consumers are to an increase or decrease in the daily price of a rental
The economic concept the CFO wants to understand is A) price elasticity of demand. B) elasticity of supply. C) changes in demand. D) changes in supply.
Refer to the table below. If this market is a Cournot Oligopoly and Firm X is produces 50 units, what is Firm Y's demand at a price of $70?
The table above shows the market demand for a product that both Firm X and Firm Y manufacture. Both firms produce an identical product and the firms' average total and marginal cost are equal and constant.
A) 50
B) 0
C) 100
D) 150