A firm's marginal cost is $30, its average total cost is $50, and its output is 800 units. Its total cost of producing 801 units is
A) less than $40,000.
B) between $40,000 and $40,050.
C) between $40,050 and $40,080.
D) greater than $40,080.
B
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The labor market is in equilibrium whenever
A) the nominal wage rate is decreasing. B) the nominal wage rate is increasing. C) the nominal wage rate is not changing. D) the real wage rate is increasing. E) the quantity of labor demanded equals the quantity of labor supplied.
Zero economic profits for a perfectly competitive firm in the long run means
A. the firm must exit the industry. B. the firm is in equilibrium. C. the firm will shut down until the market improves. D. average revenue is insufficient to cover long-run average cost.
In common value auctions
a. Every bidder know the value of the object being sold b. Each bidder makes the same estimate of the value of the good c. All bidders know the estimates of the others d. The true value of the item is common across bidders
The situation in which one large firm can provide the output of the market at a lower cost than two or more smaller firms is called ______.
a. perfect competition b. producer surplus c. a natural monopoly d. an illegal barrier