Suppose Guild produces 5,000 guitars per year. Its average total cost is $90, and its fixed cost is $250,000 . What is its variable cost?
a. $250,000
b. $450,000
c. $25,000
d. $56,000
e. $200,000
E
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If a number greater than the mean (average) of a series of observations is added to the series, the new mean is:
A) greater than the original mean. B) smaller than the original mean. C) same as the original mean. D) either greater or smaller than the original mean depending on the number of observations in the series.
The marginal propensity to consume (MPC) is equal to the inverse of the marginal propensity to save (MPS)
a. True b. False Indicate whether the statement is true or false
If a bank receives a $1 million discount loan from the Federal Reserve, then the bank's reserves will
A) not change. B) increase by $1 million. C) increase by less than $1 million. D) increase by more than $1 million.
Monopolistically competitive firms prevent the efficient use of resources because in long-run equilibrium,
A. price is less than marginal cost. B. price equals marginal cost. C. marginal cost is greater than average total cost. D. price is greater than marginal cost.