Assume a certain competitive price-taker firm is producing Q = 1,000 units of output. At Q = 1,000 . the firm's marginal cost equals $15 and its average total cost equals $11 . The firm sells its output for $12 per unit. At Q = 1,000 . the firm's profit amounts to
a. -$200.
b. $1,000.
c. $3,000.
d. $4,000.
B
You might also like to view...
In a world with saving, making an income tax a consumption tax would require the tax base to be _____
a. income b. income minus savings c. consumption plus investment d. comprehensive
Assume the North Island of New Zealand can produce 2,000 fishing poles or 20 kayaks per day and the South Island can produce 1,000 fishing poles or 5 kayaks per day. The South Island has a comparative advantage in producing kayaks
a. True b. False
Which of the following would generate positive externalities?
a. flu vaccinations b. pesticides used to create greater yields per bushel c. cigarette smoking in elevators d. litter left at the beach e. an unkempt front yard
Which is a correct statement?
a. Cyclical unemployment is also called wait unemployment because this unemployment depends on the timing of the business cycle b. Structural unemployment is unemployment resulting from changes in the structure of consumer demand or technology c. Search unemployment is the broadest unemployment category because it covers all other types of unemployment d. Frictional unemployment is the result of frictions between labor and management over how best to perform work