A bus is mostly filled with passengers and ready to travel from Los Angeles to San Francisco. At the last minute, a person comes running up to the bus and takes a seat. The change in the bus company's total cost as a result of transporting one more passenger on this trip is called:
A. marginal cost.
B. average total cost.
C. variable cost.
D. fixed cost.
Answer: A
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Which of the following defines total profit?
a. average revenue minus average cost b. marginal cost times output c. marginal revenue minus marginal cost d. total revenue minus total cost e. average cost divided by output
With specialization in a market economy, individual:
A. Firms produce a wide range of products B. Producers consume little or none of the products they produce C. Producers consume most of the output that they produce D. Consumers have to produce most of what they consume
Relative to explicit price fixing, with implicit price fixing:
A. firms will find it more difficult to figure out why the price leader has set the price that it has. B. the reasons for the price leader's pricing strategy will be more clear and less ambiguous. C. firms face a higher risk of prosecution for antitrust violations. D. consumers will pay higher prices.
Bill owns a lawn-care company in Windermere, Florida, whose cost curves are illustrated in the above figure. The market equilibrium price in this perfectly competitive market equals $32 per lawn mowed
At this price, how many lawns will Bill mow per week? A) more than 10 and less than 30 B) 30 C) 40 D) 50 E) 0