With total fixed cost of $400, a firm incurs an average total cost of $3 and average variable cost of $2.50. The amount of output produced by the firm must be

A. 800 units.
B. 1,600 units.
C. 400 units.
D. 200 units.


Answer: A

Economics

You might also like to view...

Refer to Scenario 4 . What is the opportunity cost of building one more prison?

What will be an ideal response?

Economics

If U.S. interest rates are higher than the world interest rates, we would expect the U.S. dollar to appreciate

a. True b. False Indicate whether the statement is true or false

Economics

Ceteris paribus, if Canadians decide they want to eat more U.S.-grown soybeans, this causes the ________ U.S. currency to ________.

A. supply of; decrease B. demand for; decrease C. supply of; increase D. demand for; increase

Economics

What is a company doing if it requires customers to buy multiple products from that company to obtain the one product that the customer truly wants?

(A) Practicing predatory pricing. (B) Working around antitrust laws to gain control over the market. (C) Engaging in nonprice competition. (D) Using deregulation.

Economics