Exhibit 6-9 Cost schedule for firm X
OutputQuantity
Total FixedCost
Total VariableCost
0
$100
$ 0
1
100
50
2
100
84
3
100
108
4
100
127
5
100
150
As shown in Exhibit 6-9, the average total cost of producing 5 units is:
A. $20.
B. $30.
C. $50.
D. $250.
Answer: C
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A rise in the real interest rate r
a. creates income and substitution effects that reduce C0. b. creates income effects that reduce C0, substitution effects that increase C0. c. creates income effects that increase C0, substitution effects that reduce C0. d. creates income and substitution effects that increase C0.
Suppose you are on a committee seeking to increase revenue from your city's bus system. If demand is _______, you would recommend raising the fare
a. perfectly elastic b. elastic c. unitary elastic d. inelastic
In the above figure, suppose the economy is initially at point A. People come to expect the future U.S. exchange rate to be higher. As a result there is a change from point A to a point such as ________
A) point B B) point C C) point D D) point E
Refer to the table below. Recall that the bidders only know their own private value of the item and they do not know the other participants' private values. Further, assume each participant will submit bids using their optimal strategy. If the participants are bidding in a Dutch auction, Bidder ________ wins the auction and pays ________.
The table above lists the independent private values of five participants in an auction. Each of the bidders only knows their own value and does not know the private values of the other participants.
A) #3; a value less than $10 million and greater than $9.5 million
B) #5; a value less than $10 million and greater than $9.5 million
C) #5; 9.5 million
D) #3; $10 million