In the following graph, the price of capital is $100 per unit. If a firm decides that total cost must not exceed $3,500, what is the maximum amount of output it can produce?
A. 1,000
B. 1,500
C. 500
D. 100
E. none of the above
Answer: A
You might also like to view...
A firm has fixed costs
A) in the short run and in the long run. B) in the short run but not in the long run. C) in the long run but not in the short run. D) neither in the long run nor in the short run.
Government tax and expenditure policies that affect real GDP are called
A) automatic fiscal policy. B) discretionary fiscal policy. C) fiscal policy. D) supply-side policy.
Sulfur Dioxide Discharged (Tons)Firm AFirm B10$8,000$9,000910,00012,000815,00018,000720,00027,000628,00037,000Table 16.3Table 16.3 shows the production cost for two utilities at different levels of sulfur dioxide emissions. Assume that the government issued 8 marketable pollution permits to each firm. Suppose that Firm A has already sold a permit to Firm B. If Firm A contemplates selling a second permit to Firm B, what is Firm A's willingness to accept?
A. $5,000 B. $6,000 C. $7,000 D. $8,000
When wages increase, the income effect of labor supply ________ the quantity of labor supplied because ________.
A. reduces; the price of leisure has increased B. reduces; workers acquire more of all normal goods (including leisure) when income increases C. increases; the value of working has increased D. increases; the price of leisure has increased