Average fixed cost is
a. the sum of variable and fixed costs
b. total cost minus variable cost
c. variable cost plus marginal cost
d. total fixed cost per unit of output
e. constant as output changes
D
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The supply curve for milk
a. shifts when the price of milk changes because the price of milk is measured on the vertical axis of the graph. b. does not shift when the price of milk changes because the price of milk is measured on the vertical axis of the graph. c. does not shift when the price of milk changes because the price of milk is measured on the horizontal axis of the graph. d. shifts when the price of milk changes because the quantity supplied of milk is measured on the horizontal axis of the graph.
The use of chlorofluorocarbons in refrigerators and air conditioners is alleged to cause the destruction of the ozone layer that surrounds the earth. This layer protects humans from ultraviolet radiation, which causes skin cancer. Industry has been prohibited from using these substances in aerosol cans, but the government has been reluctant to ban their use altogether because of the serious
economic consequences. Economists analyze such problems and refer to them as a. issues of unfairness. b. examples of excess abstraction. c. externalities. d. comparative advantage issues. e. examples of trade-offs between output and equality.
At least in the short run, each of these factors has increased competition except
A. the entry of foreign firms. B. the growth in size of many American firms. C. the rise of the service industries. D. the rise of new industries.
Refer to Table 8.2. If Sherry produces five pairs of earrings, her total costs are A) $320. B) $360. C) $370. D) $400.