When Acme Dynamite produces 250 units of output, its variable cost is $2,000, and its fixed cost is $500. It sells each unit of output for $25.When Acme Dynamite produces 250 units of output, its average variable cost is ________ and its average total cost is ________.
A. $8; $10
B. $10; $10
C. $10; $2
D. $8; $2
Answer: A
You might also like to view...
In 2011, the Bureau of Labor Statistics (BLS) announced that of all adult Americans, 138.84 million were employed, 13.69 million were unemployed, and 86.98 million were not in the labor force. The adult population is how many million? Enter a number rounded to two decimal places.
Refer to Figure 2-5. If the economy is currently producing at point W, what is the opportunity cost of moving to point X?
A) 19 million tons of steel B) 5 million tons of paper C) 9 million tons of paper D) 3 million tons of steel
Suppose there is a 5 percent increase in the nominal wages of workers in an economy. The annual rate of inflation in the economy is about 2 percent. Which of the following is true in this case? a. Real wage would fall by about 10 percent
b. Real wage would increase by about 20 percent. c. Real wage would fall by about 25 percent. d. Real wage would increase by about 50 percent. e. Real wage would increase by about 3 percent.
Suppose a Starbucks tall latte costs $4.00 in the United States and 3.20 euros in the Euro area. Also, suppose a McDonald's Big Mac costs $4.40 in the United States and 5.50 euros in Euro area. If the nominal exchange rate is .80 euros per dollar, the prices of which goods have prices that are consistent with purchasing-power parity?
a. both the tall latte and the Big Mac b. the tall latte but not the Big Mac c. the Big Mac but not the tall latte d. neither the tall latte nor the Big Mac