The average total cost of producing electronic calculators in a factory is $20 at the current output level of 100 units per week. If fixed cost is $1,000 per week:
A. total cost is $3,000.
B. average variable cost is $10.
C. average fixed cost is $20.
D. variable cost is $2,000.
Answer: B
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The "double coincidence of wants" is
A) what is needed to use money. B) eliminated with the use of money. C) money's role as a unit of account. D) how value is stored when we transact with money. E) eliminated when we barter instead of using money.
The above figure shows the demand and cost curves for a monopolistically competitive firm in the long run. The firm maximizes its profit by
A) producing 8 units and charging a price of $5. B) producing 8 units and charging a price of $15. C) producing 16 units and charging a price of $10. D) producing 20 units and charging a price of $25.
The basic concepts used in the analytic framework of this text include all of the following EXCEPT
A) the not-for-profit nature of most financial institutions. B) a basic supply and demand analysis to explain the behavior of financial markets. C) an approach to financial structure based on transaction costs and asymmetric information. D) the concept of equilibrium.
Holding all else constant, when interest rates fall,
(a) yields on common stocks rise above yields on bonds. (b) yields on common stocks fall below yields on bonds. (c) yields on common stocks and bonds rise at an equal rate. (d) yields on common stocks and bonds fall at an equal rate.