If a monopolist's price is $50 at the output where marginal revenue equals marginal cost and average total cost is $43, then the average profit is $7
Indicate whether the statement is true or false
TRUE
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In the United States, corporate profits are taxed at the corporate level but are not taxed as personal income in the form of dividend payments
Indicate whether the statement is true or false
If a firm is experiencing diminishing marginal returns,
a. total output decreases as all resources are increased b. total output decreases as all resources are decreased c. total output decreases as one variable resource is increased, other things constant d. additional increments of output diminish as one variable resource is increased, other things constant e. additional increments of output diminish as all variable resources are increased
The market value of ABC Corp, whose securities are publicly traded, can be found by
a. multiplying the price of its stock by the number of shares outstanding b. dividing the number of shares outstanding by the price of the stock c. adding the total value of its outstanding stock to the total value of its outstanding bonds d. subtracting the total value of its outstanding bonds from the total value of its outstanding stock e. subtracting the total value of its outstanding stock from the total value of its outstanding bonds
Suppose that the firm's only variable input is labor. When 50 workers are used, the average product of labor is 50 and the marginal product of labor is 75. The wage rate is $80 and the total cost of the fixed input is $500. What is average total cost?
A. $1.80 B. $0.825 C. $0.63 D. $4.10 E. none of the above