The firm's fixed cost refers to costs that
a. do not change as the price of a good changes
b. do not change as the firm's output changes
c. can never be changed
d. can only be changed in the short run
e. do not change when the scale of the operation changes
B
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Amanda buys a ruby for $330 for which she was willing to pay $340. The minimum acceptable price to the seller, Tony, was $140. Tony experiences a
A. consumer surplus of $670 and Amanda experiences a producer surplus of $470. B. producer surplus of $190 and Amanda experiences a consumer surplus of $10. C. consumer surplus of $10 and Amanda experiences a producer surplus of $190. D. producer surplus of $470 and Amanda experiences a consumer surplus of $670.
Ernie's Earmuffs produces 200 earmuffs per year at a total cost of $2,000 and $400 of this cost is fixed. What is Ernie's average total cost?
A) $12 B) $10 C) $8 D) $2
The law of demand holds that as prices of goods decrease, people are willing to buy more
a. True b. False Indicate whether the statement is true or false
For the period 1961 to 1969, the Phillips curve for the United States displayed the same shape that A. W. Phillips found for the United Kingdom for the period 1861 to 1913---it was
A) horizontal. B) vertical. C) downward sloping. D) upward sloping.