When producing 8 units of output, average fixed cost is $12.50 and average variable cost is $81.25. Total cost at this output level is
A. $93.75.
B. $97.78.
C. $750.
D. $880.
Answer: C. $750.
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Suppose Embryonica is an LDC with few skilled workers, a primitive banking system, and very little electric power. What do we know for sure that Embryonica is lacking?
a. Infrastructure. b. Political stability. c. Agricultural sector. d. Traditional values. e. Poverty.
Large gains from trade are most likely when countries are very different.
Answer the following statement true (T) or false (F)
Using Figure 1 above, if the aggregate demand curve shifts from AD1 to AD2 the result in the short run would be:
A. P1 and Y2. B. P3 and Y1. C. P2 and Y2. D. P2 and Y3.
A price ceiling imposed on a monopoly may:
A. drive the monopolist out of business. B. lead to no shortage. C. lead to a shortage. D. All of the statements associated with this question are correct.