Which equation is used by a manager when considering total cost?
A. total costs (TC) = average total costs (ATC)
B. total costs (TC) = consumption (C) + investment (I) + government (G)
C. total costs (TC) = total fixed costs (TFC) + total variable costs (TVC)
D. total costs (TC) = average fixed costs (AFC) + number of workers
Answer: C
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The transitional gains trap is a _____
a. by-product of some types of regulation b. associated with the move from a socialist to a market society c. associated with the move from a communal to a socialist society d. by-product of changing the rate at which capital gains are taxed
Refer to the above figure. If the government requires the natural monopolist to charge the efficient price, it will charge price
A) P5 and sell Q1 units. B) P2 and sell Q1 units. C) P3 and sell Q3 units. D) P1 and sell Q4 units.
"Any tax cut to increase demand for output should favor lower-income people" is a ________ statement about ________ policy.
A. normative; monetary B. normative; fiscal C. positive; monetary D. positive; fiscal
Build-Right Concrete Products produces specialty cement used in construction of highways. Build-Right is a price-setting firm and estimates the demand for its cement by the State Highway Department using a demand function in the nonlinear form:Q = aPbMc
where Q = yards of cement demanded monthly, P = the price of Build-Right's cement per yard, M = state tax revenues per capita, and PR = the price of asphalt per yard. The manager at Build-Right transforms the nonlinear relation into a linear relation for estimation. The estimation results are presented below: 
height="198" width="577" />Given the above, if the price of asphalt (PR) decreases 20%, the estimated quantity of cement demanded will: A. increase 1.2% B. increase 12% C. decrease 1.2%. D. decrease 12%. E. increase 6%