________ is a cost that is independent of the quantity produced by the firm and is incurred by the firm in the short run.
A. Fixed cost
B. Economic cost
C. Variable cost
D. Average total cost
Answer: A
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Assuming that one dollar trades for 6 yuan, what is the dollar cost of 30 yuan?
A) $6 B) $30 C) $10 D) $5
A firm that is trying to produce a given level of output Q0 at the lowest possible cost will
A. select the input combination at which an isocost line is above the Q0 isoquant. B. select the input combination at which an isocost line is below the Q0 isoquant. C. select the input combination at which an isocost line is tangent to the Q0 isoquant. D. choose to produce at a level where variable costs are less than or equal to fixed costs.
Refer to the following graph. The price of capital (r) is $20.
What combination of labor (L) and capital (K) can produce 5,000 units of output at lowest cost?
A. 60K, 20L B. 110K, 10L C. 42K, 52L D. 10K, 110L E. 90K, 60L
The long-run aggregate supply curve shows the relationship between
A) short-run aggregate supply and short-run aggregate demand. B) the quantity of real GDP supplied and the quantity of nominal GDP supplied. C) the real interest rate and the nominal interest rate. D) the price level and quantity of real GDP supplied.