Which of the following equations represents average variable cost?
a. $2,000 labor and materials + $2,000 rent and equipment leases = $4,000
b. $2,000 monthly rent and equipment leases / 500 units of output = $4
c. $2,000 labor and materials / 500 units of output = $4
d. $4,000 monthly rent, equipment lease, labor, and materials / 500 units of output = $8
c. $2,000 labor and materials / 500 units of output = $4
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Refer to Figure 7-2. The increase in domestic producer surplus as a result of the tariff is equal to
A) $11.25 million. B) $18 million. C) $32.5 million. D) $45 million.
Refer to Scenario 12.2. Suppose that the marginal cost falls such that: MC = Q - 10 What is the profit maximizing price?
A) 205.72 B) 240 C) 210 D) all of the above E) none of the above
The signaling aspect of the market system refer to
A) legal requirements for contracts and exchanges. B) the price of the good to the consumer and producer. C) the voluntary character of the exchange. D) transaction costs of carrying out exchanges.
In the above figure, what is the profit-maximizing output and price?
A) 8, $7 B) 10, $8 C) 12, $10 D) 10, $10