Average Variable Cost is
A. the per unit variable cost of production.
B. the per unit cost of production.
C. the addition to cost associated with one additional unit of output.
D. the per unit fixed cost of production.
Answer: A
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Use the following table for a certain product's market in Marketopia to answer the next question.Quantity Demanded DomesticallyPriceQuantity Supplied Domestically1,400$102,2001,60092,0001,80081,8002,00071,6002,20061,4002,40051,200Assume the small-country model is applicable. If the world price of the product is $6 and a tariff of $1 per unit is applied to imports of the product, then the total revenue (after tariff) going to domestic producers would be ________ and the total revenue (after tariff) going to foreign producers would be ________.
A. $8,400; $2,800 B. $11,200; $2,400 C. $13,200; $2,400 D. $11,200; $2,800
Unregulated monopolies can often make an economic profit in the long run because
A) they receive government subsidies. B) they have high costs. C) barriers to entry prevent competing firms from entering the market. D) the risks of running a monopoly are high.
When the production of a good creates an external cost, by setting the tax rate equal to the ________, firms can be made to behave in the same way as they would if they bore the cost of the externality directly
A) marginal external cost B) marginal social benefit C) marginal private benefit D) marginal social cost
If the firms in an industry could take advantage of a reduced wage, how would one best describe the firms' demand for labor? The MRPL
A) schedule would remain unchanged, and the firms would hire more labor at the lower wage. B) schedule would shift to the left and the firms would move down the new schedule. C) schedule would shift to the right and the firms would move down the new schedule. D) none of the above