Tony's Taco Truck has average variable costs of $1 and average fixed costs of $2 when it produces 50 units of output (tacos). The truck's total cost at 50 units of output is
a. $3
b. $50.
c. $100.
d. $150.
d
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What effect on the price of hiring a lawyer to draw up a will would the opportunity-cost theory predict as a consequence of legislation requiring the use of a lawyer in all real estate transactions?
A) A higher price as the market becomes flooded with lawyers. B) A higher price as lawyers find it costs them more to draw up wills C) No effect because prices are determined by demand, not by cost. D) A lower price as the market becomes flooded with lawyers E) A lower price as lawyers find they can now obtain their desired income level with lower fees
If a country removes an import quota, what happens to its exchange rate, its exports, and its net exports?
The concept of Nash Equilibrium:
A. has wide applicability. B. is limited in its applicability to economic behavior because firms do not follow their dominant strategies. C. is limited in its applicability to economic behavior because firms generally follow their dominant strategies. D. has been disproven by modern economists.
Describe the bargaining process between the refineries and the recreational water users, assuming the refineries have the right to pollute.
Use the following graph of the refined petroleum market to answer the questions below.
