If a profit-maximizing firm in a perfectly competitive market is currently producing the output where (price - average variable cost) = average fixed cost, the firm is:
A. making a positive economic profit.
B. making a zero economic profit.
C. suffering an economic loss.
D. None of these
Answer: B
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The phone bill for a company consists of both fixed and variable costs. Refer to the four-month data below and apply the high-low method to answer the question. Minutes Total Bill January 480 $4000 February 200 $2700 March 170 $2640 April 320 $2855 What is the fixed portion of the total cost?
Making decisions with outcomes are uncertain is ________ and ________.
A) common; easy B) uncommon; easy C) common; difficult D) uncommon; difficult
One reason most central bankers do not set an inflation target of zero is:
A. they believe it would cause price volatility. B. it is almost impossible to achieve. C. the central bank could hit the lower bound. D. none of the answers given is correct.
Maximum Feasible Hourly Production Rates (in Tons) of EitherCookies or Coffee Using All Available ResourcesProductCountry AlphaCountry BetaCookies38Coffee94Use the above table. Assuming constant opportunity costs, the opportunity cost of producing cookies in country Alpha is ________, and the opportunity cost of producing cookies in country Beta is ________.
A. 3 tons of coffee; 0.5 ton of coffee B. 0.375 ton of cookies; 2.25 tons of coffee C. 0.33 ton of coffee; 2 tons of coffee D. 2.67 tons of coffee; 0.44 ton of cookies