Average total cost equals
A. TC/Q.
B. TVC/Q.
C. TFC/Q.
D. change in total cost/change in output.
Answer: A
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When a consumer chooses the combination of goods and services to buy, what is she or he trying to achieve?
What will be an ideal response?
Dan is the owner of a price-taking company that manufactures sporting goods. One particular facility Dan owns produces baseball bats and baseball gloves. His cost function for baseball bats is CB(QB, QG) = 100QB + QB2 + QBQG and the marginal cost is MCB = 100 + 2QB + QG, where QB is the output level for bats and QG is the output level for gloves. Dan's cost function for baseball gloves is CG(QB, QG) = 50QG + QG2 + QGQB, and the marginal cost is MCG = 50 + 2QG + QB. The price of a baseball bat is $240 and the price of a baseball glove is $150. If Dan were to shut down his production of bats and only produce gloves, what would be his profit-maximizing sales quantity of gloves?
A. 20 B. 25 C. 30 D. 50
The Earned Income Tax Credit replaced many government transfer programs
a. True b. False
When the price of ice cream falls, we would expect the quantity demanded of ice cream to rise, ceteris paribus
a. True b. False Indicate whether the statement is true or false