This table shows the total costs for various levels of output for a firm operating in a perfectly competitive market.PriceQuantityTC$500$10.00$501$20.00$502$27.50$503$77.50$504$147.50$505$250.00According to the table shown, what is the firm's marginal cost from producing the 2nd unit?
A. $20.00
B. $10.00
C. $7.50
D. $27.50
Answer: C
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Refer to the above figure. Suppose that the supply curve shifts from SA to SB while the demand curve remains at DA. Which of the following is TRUE?
A) Only quantity supplied has increased. B) Only quantity demanded has decreased. C) Supply has increased. D) Supply has decreased.
The effect time lag is the time period that elapses
A) between when an economic problem manifests itself and it is officially acknowledged. B) between the recognition of an economic problem and implementing policies to solve it. C) between implementing policies to solve an economic problem and when the results of that policy can be measured. D) between the beginning of the budgetary process and the final budget resolution.
In the context of insurance, moral hazard refers to:
A. when risks are shared across many different assets or people, reducing the impact of any particular risk on any one individual. B. the tendency for high-risk individuals to seek out more insurance than low-risk individuals. C. when people organize themselves in a group to collectively absorb the cost of the risk faced by each individual. D. the tendency for people to behave in a riskier way after they have acquired insurance.
If a Central Bank wishes to reduce the supply of money, it should:
(a) Reduce the reserve requirement. (b) Raise the reserve requirement. (c) Instruct banks to reduce their savings rates. (d) Do all of the above.