What is the relationship between average total cost, average variable cost, and average fixed cost? If average total cost is $5.76 and average fixed cost is $1.35, what is the level of average variable cost?
What will be an ideal response?
Average total cost is equal to the sum of average variable cost and average fixed cost. Thus, average variable cost is equal to average total cost minus average fixed cost or $5.76 - $1.35 = $4.41 .
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In each of the following cases, identify whether a competitive firm's producer surplus will increase, decrease, or remain unchanged
i. The demand for the product increases ii. The firm's marginal cost of production increases iii. The market price of the product falls
In the United States, which agency determines whether domestic firms have been harmed by subsidies and dumping or by a sudden surge in imports and whether protection is warranted?
What will be an ideal response?
According to the quantity theory of money, an increase in the stock of precious metals or bills of exchange usually results in increased trade and rising prices. Both economic events helped merchant capitalists and the king
Indicate whether the statement is true or false
In the long run, a profit-maximizing monopolistically competitive firm sells at a price that is:
A. equal to average total cost, but higher than marginal cost. B. equal to marginal cost and marginal revenue. C. equal to average total cost, but lower than marginal cost. D. equal to demand, but higher than average total cost and marginal cost.