If a multi-plant firm has three plants and uses each of the plants to produce its product, the marginal cost to produce the firm's product is equal to ________.
A) the sum of the marginal costs from each of the three plants
B) the plant with the highest marginal cost
C) the plant with the lowest marginal cost
D) the sum of the average fixed costs from each of the three plants
A) the sum of the marginal costs from each of the three plants
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A member in a cartel can earn more profits by
A) charging a slightly lower price and raising production. B) producing less than the agreed rate. C) selling less than the agreed amount. D) none of the above.
Traditional models incorporate social and moral incentives into price.
Answer the following statement true (T) or false (F)
The opportunity cost of taking a semester-long economics class is
A) the cost of tuition and fees only. B) the value of the time spent in the classroom. C) zero because there is no admission charged if you are enrolled in the course. D) equal to the highest value of an alternative use of the time and money spent on the class. E) the knowledge and enjoyment you receive from attending the class.
If Trent's MPC is .80, this means that he will:
A. spend eight-tenths of any increase in his disposable income. B. spend eight-tenths of any level of disposable income. C. break even when his disposable income is $8,000. D. save two-tenths of any level of disposable income.