The Farley Farm, a dairy company, has total costs of $15,000 and total variable costs of $2,000. The Farley Farm's total fixed costs are
A) $0.
B) $13,000.
C) $17,000.
D) indeterminate because the firm's output level is not known.
B) $13,000.
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The above figure shows Dana's marginal benefit curve for ice cream. If the market price is $2 per gallon, then Dana's consumer surplus from the 4th gallon of ice cream is
A) $0. B) $2. C) $3. D) $10.
According to the kinked demand curve theory of sticky prices, in an oligopolistic market:
A. a price decrease by one firm will not be followed by the other firms. B. the kinked demand curve is inelastic in the upper portion and elastic in the lower portion of the curve. C. the kinked demand curve is elastic in the upper portion and inelastic in the lower portion of the curve. D. a price increase by one firm will be followed by the other firms.
In a recession, the cyclical unemployment:
A. is negative. B. is zero. C. equals the natural rate of unemployment. D. is positive.
Economists assume people behave
A) instinctively.
B) rationally.
C) irrationally.
D) greedily.