A fishing boat owner sells her entire catch of 8,000 fish and maximizes profit that is equal to $4,000 . Suppose fish prices increase and she now sells 10,000 fish. If fish prices increased by $1 per fish, what do you need to know to calculate her new average total cost?
a. average fixed cost
b. change in average variable cost
c. change in total variable cost
d. how many fish she catches
e. how much profit is made
E
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It costs a firm $80 per unit to produce product A and $50 per unit to produce B individually. If the firm can produce both products together at $120 per unit of product A and B, this exhibits signs of
a. Economies of scale b. Economies of Scope c. Diseconomies of Scale d. Diseconomies of Scope
An inferior good is one in which
a. the average consumer chooses not to consume. b. the good is not equally valued by all consumers. c. an increase in income increases consumption of the good. d. an increase in income decreases consumption of the good.
The function of an entrepreneur is: (check all that apply)
a. to maximize the welfare of society. b. to avoid risks and prevent the commercialization of new products and ideas. c. to make strategic business decisions. d. to combine the resources of land, labor, and capital to produce a g
Refer to the accompanying figure.
An economy in short-run equilibrium at point A has a(n) ________ gap. The gap could be eliminated by the self-correcting mechanism of the economy and eventually achieve long-run equilibrium at point ________ or the central bank could intervene with monetary easing establishing the long-run equilibrium at point ________.
A. recessionary; C; B B. expansionary; C; B C. expansionary; B; C D. recessionary; B; C