Using cost plus pricing, what is the price if ATC = $14.50 and the target rate of return is 4 percent?
A. $15.10
B. $14.5
C. $49.34
D. $22.10
Answer: A
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Refer to Figure 7.1. If Angus chooses to earn the most money and Dudley calls the police, Dudley will receive a daily payoff of
A) $350. B) $550. C) $700. D) none of the above
Refer to Figure 2-1. Point B is
A) technically efficient. B) unattainable with current resources. C) inefficient in that not all resources are being used. D) the equilibrium output combination.
A monopolistic competitor is in long-run equilibrium when
A) it is making zero profits and price equals marginal cost. B) its average total cost curve is tangent to the demand curve at the profit-maximizing rate of output. C) price is greater than marginal cost. D) it is making positive profits or zero profits and price is greater than marginal cost.
Variable costs
A) do not vary with price. B) do not vary with output. C) vary with price. D) vary with output.