A perfectly competitive firm sells 15 units of output at the going market price of $10. Suppose its average fixed cost is $15 and its average variable cost is $8. Its contribution margin (i.e., contribution to fixed cost) is
A) $30.
B) $150.
C) $105.
D) Cannot be determined from the above information
A
You might also like to view...
Which of the following holds that economic decision making on all levels is unbiased and is based on all available information?
A) adaptive expectations based theory B) rational expectations based theory C) Keynesian cycle theory D) none of the above
If Bill thinks tacos and turkey sandwiches are perfect substitutes, then his indifference curves for these two goods
A) are L-shaped. B) are negatively sloped and linear. C) are positively sloped and linear. D) have slopes equal to 1.
The components of investment expenditures include all of the following except
A) financial investment. B) residential investment. C) non-residential investment. D) inventory investment.
Refer to the figure below. If Cory chooses A, then Jess's best response is: 
A. non-existent. B. to choose A. C. to choose the cell in which Jess's payoff is 10 D. to choose B.