Suppose a publisher faces the following costs of producing 10,000 newspapers each month: $5,500 cost of labor; $2,200 monthly mortgage payment; $250 cost of electricity to run the printing presses; $800 for ink and paper; and $200 in city property taxes (based on the value of the building and land). Its total variable costs are:
a. $8,950.
b. $8,750.
c. $6,550.
d. $6,300.
e. $5,500.
c
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When the price of oranges increases,
A) the supply of oranges increases. B) the quantity of oranges demanded increases. C) the quantity of oranges supplied increases. D) the supply of oranges decreases. E) none of the above
Since demanders of a good are concerned with the total price they have to pay for a good, a unit tax on the good will _____
a. shift the supply curve downward by the entire amount of the tax b. shift the supply curve upward by the entire amount of the tax c. shift the demand curve downward by the entire amount of the tax d. shift the demand curve upward by the entire amount of the tax
"All monopolies operate with positive economic profits." Do you agree or disagree? Why?
What will be an ideal response?
Refer to the information provided in Figure 6.2 below to answer the question(s) that follow.
Figure 6.2Refer to Figure 6.2. Assume Mr. Lingle's budget constraint is AC. If the price of a beer is $3, the price of a gardenburger is
A. $1.50. B. 3.00. C. $6.00. D. $12.00.