A company is producing 15,00 . units. At this output level, marginal revenue is $22 and the marginal cost is $18 . The firm sells each unit for $48 and average total cost is $40 . What can we conclude from this information?
a. The company is making a loss
b. The company needs to cut production
c. The company needs to increase production
d. Not enough information is provided
c
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Alex, Bill, and Cid live in Souland. Their annual incomes and the amounts they pay in income tax are shown in the table below. Income Tax Alex 30,000 6,000 Bill 20,000 4,000 Cid 40,000 8,000 The income tax in Souland is
A) proportional. B) disproportional. C) regressive. D) progressive.
Which of the following is most likely to be a fixed cost for farmer McDonald? Fertilizer
A. Gasoline B. Fertilizer C. Insurance D. Seed
Suppose that as the price of apples rises, people switch from eating apples to eating oranges. This is known as:
A. a decrease in the demand for apples. B. the normal effect of a price change. C. the income effect of a price change. D. the substitution effect of a price change.
The economy's long-run aggregate supply curve:
A. slopes upward and to the right. B. is vertical. C. is horizontal. D. slopes downward and to the right.