Suppose that for a particular firm the only variable input into the production process is labor and that output equals zero when no workers are hired. In addition, suppose that when four units of output are produced, the total cost is $175, and the average variable cost is $33.75 . What would the average fixed cost be if ten units were produced?
a. $4
b. $10
c. $40
d. $135
a
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Starting from long-run equilibrium, a large decrease in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; lower; potential B. expansionary; higher; potential C. recessionary; lower; potential D. recessionary; lower; lower
The owner of a sole proprietorship has limited liability, while stockholders of corporations have unlimited liability
a. True b. False Indicate whether the statement is true or false
In a competitive market, the quantity of each good produced and the price at which it is sold are not determined by any single buyer or seller
a. True b. False Indicate whether the statement is true or false
Which of the following examples would most likely use advertising?
a. A firm sells a product with low differentiation. b. A firm sells a homogeneous product. c. A firm sells a product with many substitutes. d. A firm sells a product with few substitutes.