In the market for cell phones, all of the following would cause the supply of cell phones to change except:
A) an improvement in the technology used to produce cell phones.
B) an increase in the cost of labor used to produce cell phones.
C) a change in cell phone producers' expectations.
D) an increase in the number of buyers in the market for cell phones.
D
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The total cost of producing one unit of output is $200; two units cost $300, three units $450, and four units $800. Fixed cost is $50. Draw the associated total cost, average cost, and marginal cost curves, placing total cost on one graph and marginal and average cost on a second graph.
What will be an ideal response?
In long-run equilibrium, the perfectly competitive firm will
A) go out of business. B) produce to the point at which marginal cost is at its minimum. C) produce to the point at which marginal cost equals average total cost. D) produce on the upward sloping portion of its ATC curve.
In a free market, the quantity demanded will not exceed the quantity supplied of a resource, even if it is undergoing rapid depletion.
Answer the following statement true (T) or false (F)
A firm pays Pam $40 per hour to assemble personal computers. Each day, Pam can assemble 4 computers if she works 1 hour, 7 computers if she works 2 hours, 9 computers if she works 3 hours, and 10 computers if she works 4 hours. Pam cannot work more than 4 hours day. Each computer consists of a motherboard, a hard drive, a case, a monitor, a keyboard, and a mouse. The total cost of these parts is $600 per computer. If the firm sells each computer for $625, then how many hours a day should the firm employ Pam to maximize its net benefit from her employment?
A. 3 hours B. 2 hours C. 1 hour D. 4 hours