With fixed costs of $400, a firm has average total costs of $3 and average variable costs of $2.50. Its output quantity must be:
A. 200 units
B. 400 units
C. 800 units
D. 1,600 units
C. 800 units
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In the figure above, moving from point B to point D
A) has an opportunity cost of one ton of butter per month. B) has an opportunity cost of one ton of guns per month. C) requires an increase in technology. D) is impossible.
The firm in the above figure breaks even when quantity is
A) A. B) B. C) C. D) D.
Public choice theory assumes voters, politicians, and other individuals in the public sector are largely motivated by
a. a desire to promote the general welfare. b. a desire to meet the conditions of economic efficiency for the economy as a whole. c. altruism or the good of the public as a whole. d. personal self-interest.
The statistic called Gross Output (GO) is bigger than GDP, because GO sums up the values in all stages of a productive economy, whereas GDP accounts only for the final stage.
Indicate whether the statement is true or false