If a firm's output equals 10, product price equals $5.00, TFC = $8.00, and TVC = $60.00, then ATC would equal
a. $.80
b. $1.00
c. $6.00
d. $6.80
e. $8.00
D
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A decrease in people's disposable income
A) increases saving and decrease consumption. B) increases saving. C) increases investment demand. D) decreases saving. E) increases consumption.
In the small closed economy of San Lorena, the currency is the denar. Statistics for last year show that private saving was 60 billion denars, taxes were 80 billion denars, government purchases of goods and services were 70 billion denars, there were no transfer payments by the government, and GDP was 400 billion denars. What were consumption and investment in San Lorena?
a. 270 billion denars, 50 billion denars b. 250 billion denars, 60 billion denars c. 260 billion denars, 70 billion denars d. None of the above is correct.
Refer to Figure 36.4 for the dollar-yen foreign exchange market. A decrease in demand from D1 to D2 could have been caused by
A. A poor performance by the Japanese stock market compared to the U.S. stock market. B. A quota placed on Japanese television imports to the United States. C. A decrease in the demand for U.S. computers. D. An increase in the number of Japanese visitors to the United States.
Suppose that at the current level of output, price = $12, MC = $4, AVC = $7, and ATC = $11. Which of the following is TRUE?
A) The firm should decrease output. B) The firm should shut down. C) The firm should increase output. D) The firm should maintain the current level of output.