Heath's company is currently producing 30 units of output. The price of the good is $8 per unit. Total fixed costs are $50 and the average variable cost is $5 at 30 units. This company:
a. is experiencing a loss of $40.
b. should shut down its operation.
c. is experiencing an economic profit of $40.
d. should expand its operation.
c. is experiencing an economic profit of $40.
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A mixed strategy may
A) be part of a Nash equilibrium. B) be a set of probabilities of selecting each possible action. C) lead identical firms to choose different actions. D) All of the above.
The manager of a shoe-manufacturing unit divides workers into three groups and assigns them tasks based on their skill sets. Some are assigned the task of designing shoes, some are assigned the task of manufacturing shoes, and the rest are asked to pack the shoes. This is: a. an example of specialization of labor
b. likely to increase the total cost of manufacturing shoes. c. likely to increase the marginal cost of producing additional shoes. d. an example of wage discrimination among workers.
Market economies rely on which of the following to allocate scarce resources?
a. government b. consumers c. relative prices d. real interest rates
The Congressional Budget Office estimates that the payments to settle malpractice lawsuits and the premiums doctors pay for malpractice insurance account for ________ of health care costs in the United States
A) between 20 and 30 percent B) roughly half C) less than 1 percent D) a vast majority