With fixed costs of $200 . a firm has average total costs of $5 and average variable costs of $3 . Its output is:
a. 100 units.
b. 40 units.
c. 66.67 units.
d. Need more information
a
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The policy of running deficits and only gradually increasing taxes later to service the debt is referred to as
A) tax-smoothing. B) Ricardian equivalence. C) generational accounting. D) crowding out.
If the price elasticity of demand is less than 1, a monopoly's
A) total revenue increases when the firm lowers its price. B) total revenue decreases when the firm lowers its price. C) marginal revenue is undefined. D) marginal revenue is zero.
At macroeconomic equilibrium
A) total taxes equal total transfers. B) total consumption equals total production. C) total investment equals total inventories. D) total spending equals total production.
The substantial increase in household debt relative to income since the mid 1980s meant that in 2008 many households
a. had little savings or other reserve assets for use to deal with unexpected expenditures. b. could safely afford to purchase larger homes because housing is always a good investment. c. could spend everything they earned because their interest obligations on outstanding credit were low. d. would be able to easily adjust their current spending if their monthly payments on adjustable rate mortgages rose.