Which of the following is true concerning cost curves?
a. TC + TFC = TVC
b. AFC + AVC = ATC
c. MC + AVC = TVC
d. TC – MC = TFC
e. ATC + MC = TC
B
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The factors of production include all goods and services produced in an economy.
Answer the following statement true (T) or false (F)
The figure above provides information for a factory that produces chemicals that pollute a waterway. The waterway is used by water skiers. If the waterway is owned by a water ski club and the Coase theorem applies, then the factory will produce ________ tons of chemicals a week.
A) 1 ton B) as many tons as possible C) 3 tons D) 5 tons
Refer to Figure 4-2. What area represents the decrease in producer surplus when the market price falls from P2 to P1?
A) B + D B) A + B C) C + E D) A + C + E
A flood damages many homes and farms in the Midwest. Shortly thereafter, the price of plywood rises significantly. The events suggest that:
a. a decrease in the supply of plywood caused the price of plywood to rise. b. an increase in the supply of plywood caused the price of plywood to rise. c. a decrease in the demand for plywood caused the price of plywood to rise. d. an increase in the demand for plywood caused the price of plywood to rise.