The average variable cost of producing 250 sundaes is $5. At this level of output, average variable cost is minimized. Which of the following statements is true?
A. Average fixed cost is minimized at an output less than 250 sundaes.
B. Total cost of producing 250 sundaes is $1,250.
C. Average total cost is minimized at an output greater than 250 sundaes.
D. Marginal cost of the 251st sundae is $1,250.
Answer: C
You might also like to view...
The idea of the multiplier is that a change in ________ expenditure changes real GDP, which then changes ________ expenditure. The change in total expenditure will be larger than the initial change in ________ expenditure
A) induced; induced; autonomous B) induced; autonomous; induced C) autonomous; induced; autonomous D) induced; autonomous; autonomous E) autonomous; induced; induced
The dominant strategy for each of the players in the prisoner's dilemma game does not yield the optimal outcome for each player because:
A) each player is misinformed about the decision that has been made by the other player. B) the players do not understand the consequences of each of the choices they can make. C) the two players are not allowed to communicate or otherwise cooperate with each other. D) each player fails to consider how the other player might act.
When the market estimate of a company's riskiness decreases the market adjusts by
a. having the supply of that bond increase. b. having the supply of that bond decrease. c. having the demand for that bond increase. d. having the demand for that bond decrease.
Exhibit 10-6 Two-Firm Payoff Matrix
Assume costs are identical for the two firms in Exhibit 10-6. If both firms were allowed to form a cartel and agree on their prices, equilibrium would be established by:
A. Widget Co. charging the low price and Ajax Co. charging the high price. B. Widget Co. charging the high price and Ajax Co. charging the low price. C. Widget Co. charging the low price and Ajax Co. charging the low price. D. Widget Co. charging the high price and Ajax Co. charging the high price.