A firm has a fixed cost of $700 in its first year of operation. When the firm produces 99 units of output, its total costs are $4,000 . The marginal cost of producing the 100th unit of output is $200 . What is the total cost of producing 100 units?
a. $42
b. $900
c. $4,200
d. $4,900
c
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An event driving gasoline prices higher from 2006 to 2008 was
A. conflict in Nigeria. B. growing energy use in China and India. C. Hurricanes Katrina and Rita. D. all of the answers are correct.
Suppose a monopolist's demand curve lies below its average variable cost curve. The firm will:
a. earn an economic profit. b. stay in operation in the short-run. c. shut down. d. none of these.
In the long run, a monopolistically competitive firm produces at minimum average cost.
Answer the following statement true (T) or false (F)
You read a story in the newspaper about the "economies of mass production." This means that
A. fixed cost is less at larger levels of production. B. total cost is less at larger levels of production. C. marginal cost is less at larger levels of production. D. long-run average cost is less at larger levels of production.