A firm’s fixed costs are $10 million. It sets the price at $1800 per unit and has marginal costs of $1,000. What is the firm’s contribution margin?
a. ?$800
b. ?$300
c. ?$1800
d. ?$1000
Answer: a. ?$800
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Many U.S. business leaders argue that the current state of U.S. net exports is the result of
a. U.S. export subsidies. b. free trade policies of foreign governments. c. unproductive U.S. workers. d. unfair foreign competition.
Which of the following most characterizes monopolistic competition?
A. Price leadership. B. Price discrimination. C. Economies of scale. D. Product differentiation.
The ability to organize and meet an objective, such as meeting regulatory and financial requirements to start and run a business, is known as:
A. business sovereignty. B. democratic capitalism. C. consumer sovereignty. D. entrepreneurship.
Suppose that in 2020, nominal Gross Domestic Product (GDP) for the economy of Chiconia was $10 trillion and the Gross Domestic Product (GDP) price index was 200.0. What is Chiconia's real Gross Domestic Product (GDP) in 2020?
A. $200 trillion B. $10 trillion C. $5 trillion D. $20 trillion