A firm's average variable cost is $90, its total fixed cost is $10,000, and its output is 1,000 units. Its total cost is
A) less than $85,000.
B) between $85,000 and $95,000.
C) between $95,000 and $105,000.
D) more than $105,000.
C
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Full employment is defined by the Council of Economic Advisers as
A) 4 percent. B) every adult who wants to work has a job. C) the unemployment rate associated with zero inflation. D) the unemployment rate associated with the normal frictions in the labor market.
When the free market produces less than the socially optimal quantity of a good,
a. negative externalities must be present b. marginal social cost must exceed marginal private cost c. marginal private benefit must exceed marginal social benefit d. the government should tax production of the good e. there has been a market failure
In general, the more complex the tax the:
A. more tax revenues it will generate. B. more efficient it will be. C. higher the administrative burden will be. D. more deadweight loss it will create.
Which one of the following would create a demand for a foreign currency and supply of dollars in the foreign exchange market?
a. the spending of French tourists in the United States b. the purchase of Japanese automobiles by American consumers c. the sale of U.S. computer equipment to a French buyer d. the purchase of a U.S. shoe factory by a Mexican investor