Assume that one laborer produces 6 units of output, two laborers produce 14 units, three produce 20 units, and four produce 24 units. If the cost is $20 per unit of labor and fixed costs are $100, what is the average total cost of producing 14 units of output?
a. $50
b. $20
c. $10
d. $100
e. $40
c
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Which of the following is considered an advantage of a sole proprietorship?
A) easy to raise large sums of capital B) limited liability for owner C) profit taxed only once D) permits effective specialization
Which statement is true?
A. Scarcity is simply a lack of money. B. The United States' society has been so affluent in the last 50 years that scarcity is only a minor problem. C. The economic problem refers to the problem of poverty. D. If scarcity did not exist there would be no need to economize.
Which of the following demonstrates the income effect of a price change?
a. Sales of smartwatches rise during tax season when many consumers have tax refunds to spend. b. A store manager notes that most customers who buy a smartwatch do not purchase a second smartwatch, no matter how low the price is. c. Sales of smartwatches rise after the company introduces a new model with high utility for consumers. d. A store manager notes that when the price of the smartwatch rises, fewer consumers are interested in owning two of them.
If there is a decrease in demand for lettuce, we would expect:
A. both the price and quantity sold to increase. B. both the price and quantity sold to decrease. C. the price to decrease and the quantity sold to increase. D. the price to increase and the quantity sold to decrease.