In the short run, a firm 's output level is 10 units. Its total cost is $4000 and its average fixed cost is $100. What is this firm's average variable cost (AVC) of producing 10 units?
A) AVC = $250
B) AVC = $275
C) AVC = $300
D) AVC = $400
C
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A proportional tax is defined as a tax for which the
a. average tax rate rises as income increases. b. average tax rate falls as income increases. c. average tax rate remains constant at all levels of income. d. dollar tax liability of those with higher income is the same as the dollar tax liability of those with lower income.
Make a case for income inequality.
What will be an ideal response?
Paying an above-equilibrium wage rate might reduce unit labor costs by:
A. permitting the firm to attract lower-quality labor. B. increasing the opportunity cost to workers of being fired for shirking. C. increasing voluntary worker turnover. D. increasing the supply of labor.
Figure 4.3 illustrates the demand for tacos. An increase in the demand for tacos is represented by the movement from:
A. point a to point b. B. point c to point b. C. D2 to D1. D. D0 to D1.