Table 21.2Output (units per day)0102030Total cost (dollars per day)$40$54$62$80At 30 units of output in Table 21.2, the total variable cost is
A. $40.
B. $80.
C. $50.
D. $30.
Answer: A
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Patent and copyright laws
a. encourage creative activity. b. promote competition among firms. c. discourage creative activity. d. Both a and b are correct.
For this question, assume that the Fed is expected to respond to any event by keeping output constant (i.e., equal to its initial level). An unexpected increase in government spending will cause
A) stock prices to fall. B) stock prices to rise. C) no change in stock prices. D) an ambiguous effect on stock prices.
Total product will start to decrease
A) at the quantity where the law of diminishing returns starts. B) when average physical product decreases. C) when marginal physical product increases. D) when marginal physical product becomes negative.
Suppose that elasticity has been reliably measured as 1.55 and the unit price decreases from $20 to $17.50. How much will quantity demanded increase?
What will be an ideal response?