Suppose that a firm has an average variable cost of $52.50 when producing 120 units of output. What is the firm's total variable cost?
What will be an ideal response?
Because average variable cost is equal to total variable cost divided by the number of units of output, this means that the firm's total variable cost must be equal to its average variable cost multiplied by the number of units of output. Therefore, total variable costs are equal to ($52.50)(120) = 6,300 .
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A) increasing return. B) capital deepening. C) diminishing returns. D) constant returns.
If nominal GDP is $12 trillion, the price level is 120, and the quantity of money is $4 trillion, what is the velocity of circulation?
A) 3 B) 2.5 C) 30 D) 25
The balanced-budget multiplier
A. equals 1. B. is greater than 1. C. is greater than 0 but less than 1. D. equals 0.
An adverse supply shock would cause
A. the short-run Phillips curve to shift downward and to the left. B. the short-run Phillips curve to shift upward and to the right. C. a movement down the short-run Phillips curve. D. a movement up the short-run Phillips curve.