Refer to Variable Cost of Production. If the total cost of producing the sixth unit of output is $190, fixed costs must be
The following questions refer to the following table which shows a firm's variable costs of production.
a. $8.
b. $22.
c. $30.
d. $40.
c. $30.
You might also like to view...
A scatter diagram with the price of peanut butter on the vertical axis and the price of jelly on the horizontal axis shows a negative relationshi
A) negative relationship, also called a direct relationshi
Grant has $200 to spend each month on restaurant meals and jazz performances at his
neighborhood jazz club. The price of a typical restaurant meal is $20 and the price of a jazz performance ticket is $10. Grant is maximizing his utility by consuming 6 restaurant meals and attending 8 jazz performances. Suppose Grant still has $200 to spend, but the price of restaurant meal rises to $25, while the price of jazz performance ticket drops to $8. Can it be determined if Grant is better off or worse off than he was before the price change? Use a budget constraint/indifference curve graph to illustrate your answer.
In Figure 1 below if the economy were at Y3 then we would expect there to be:
A. an increase in production since PAE < actual output.
B. an increase in production since PAE > actual output.
C. no change in production since PAE = actual output.
D. a decrease in production since PAE < actual output.
When the government taxes a firm that generates external costs, the firm will produce
A. fewer units of output than before the tax was imposed in order to continue maximizing profits. B. more units of output than before the tax was imposed in order to continue maximizing profits. C. the same number of units of output as before the tax was imposed to continue maximizing profits. D. either more or fewer units of output than before the tax was imposed depending upon what happens to the profit-maximizing level of output.