A business incurs the following costs per unit: Labor - $5/unit; Materials $3/unit and rent - $5000/month. If the firm produces 100 . units a month, the total variable costs equals

a. $5,000
b. $8,000
c. $13,000
d. $10,000


b

Economics

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If a financial institution extends a 25 year loan at a 6 percent interest rate, and then the inflation rate increases suddenly and unexpectedly to 6 percent per year, the institution receives on its loan a real return of

A) minus 12 percent. B) zero percent. C) 6 percent. D) 12 percent. E) 36 percent.

Economics

A horizontal demand curve is

A. has elasticity of zero. B. unit elastic. C. perfectly elastic. D. perfectly inelastic.

Economics

Suppose Motorland's government imposes a tax of $1.50 per gallon of gasoline sold. With the tax, when the market is in equilibrium, the deadweight loss is

A) zero. B) $37,500 per month. C) $150,000 per month. D) $75,000 per month.

Economics

A monopolist has no supply curve because

a. as demand changes, each output level can be consistent with more than one profit-maximizing price b. monopolists tend to restrict output c. monopolists have no marginal cost curve d. monopolists can charge any price they want e. as demand changes, the firm's profit-maximizing choice of output may change

Economics