Suppose a firm has an output of 10,000 cans and a total fixed cost of $2,000 . At an output of 5,000 the difference between the total cost and the total variable cost is:
a. b and c.
b. $0.40.
c. the average fixed cost.
d. $2,000.
e. $0.20.
d
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To be part of the supply for a good, a producer must be
A) only willing to supply the good. B) only able to supply the good. C) both able and willing to supply the good. D) both able and willing to supply the good, and have already identified a buyer. E) both able and willing to supply the good, and have already sold the good.
Suppose the current unemployment rate is 15 percent. If it rises to 20 percent
A) the economy will move up along the production possibilities curve. B) the economy will move closer to the production possibilities curve. C) the production possibilities curve will shift inward. D) the economy will operate farther inside the production possibilities curve.
A particularly strong expansion is called a(n):
A. output excess. B. boom. C. bonanza. D. growth recession.
Curly told Larry about his new business venture: Curly pays Acme International $1,000 per month for supplies, works out of his apartment on his own computer and earns a monthly revenue of $1,500. Should Larry quit his job and do what Curly is doing?
A. Not if Larry is earning more than $500 per month at his current job. B. Yes, as long as Larry can work out if his apartment and owns a computer. C. Yes, as long as Larry has at least $1,000 in savings to get started. D. Not unless Larry can borrow the $1,000 monthly payment at no interest.