Assume that in the short run a firm is producing 100 units of output, has average total costs of $200, and has average variable costs of $150. The firm's total fixed costs are:
A. $5,000.
B. $500.
C. $0.50.
D. $50.
Answer: A
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The demand curve for a monopoly firm
A) lies below its marginal revenue curve. B) is perfectly inelastic. C) is the same as the market demand curve. D) is horizontal.
The fact that supermarkets, a land-intensive form of organization, have become the dominant form of grocery store in the United States suggests that:
A) there is little or no potential for input substitution in the grocery store business. B) transportation costs are insignificant in the grocery store business. C) land is a relatively inexpensive input in the grocery store business. D) labor is relatively inexpensive in the grocery store business.
The minor league system in professional baseball can be thought of as a
A) screening tool. B) signaling tool. C) form of statistical discrimination. D) being used for the wrong reasons.
In this supply and demand curve, the tax causes the equilibrium quantity of the good (bought and sold) to ______.
a. rise
b. fall
c. move further right on the demand curve
d. move further right on the supply curve