Gary is a tailor who creates custom-made business suits. His yearly total cost (TC) is $28,000. His average total cost (ATC) for the year is $400. How many business suits does Gary's business make in a year? a. 50 b. 20 c. 30 d. 70 e. none of the above d. 70 ATC: TC / ? units 400 = 28,000 / Q

a. 50
b. 20
c. 30
d. 70
e. none of the above


d. 70
ATC: TC / ? units
400 = 28,000 / Q
Q = 28,000 / 400 = 70

Economics

You might also like to view...

On the basis of which interest rate are Eurocredits often quoted?

A) United States Prime Rate B) European Central Bank Offer Rate C) London Interbank Offered Rate D) International Monetary Fund Interest Rate

Economics

The Lorenz curve:

A. plots graphically the poverty rate over time. B. is located closer to the diagonal today than it was in 1975. C. plots graphically the distribution of income. D. is located farther from the diagonal when income is defined to include the value of noncash transfers.

Economics

Which of the following is true for a monopolistically competitive firm in long-run equilibrium?

A) P = ATC and MR = MC. B) P = ATC and P = MC. C) P > ATC and P > MR. D) P > MR and MC = ATC.

Economics

To have an effect on the market price, price ceilings must be set above the equilibrium price. ?

Answer the following statement true (T) or false (F)

Economics