When a company produces 5,000 units, total costs equal $150,000 and total variable costs equal $75,000. At this level of output, what is that company average fixed cost?
A) $75,000
B) $30
C) $225,000
D) $15
Answer: D
You might also like to view...
Whenever fiscal policy actions, such as income tax cuts, are utilized to expand the economy, the Keynesians prefer
a. a contractionary monetary policy. b. monetary policy to stay the same because of the liquidity trap. c. accompanying decreases in the money supply that will cause the interest rate to rise and, thus, prevent the crowding out of investment. d. accompanying increases in the money supply in order to prevent the interest rate from rising and, thus, prevent the crowding out of investment. e. both b and/or d
Consider a supply curve of the form: Q = c + dP. If d equals zero, then supply is:
A) completely inelastic. B) inelastic, but not completely inelastic. C) elastic, but not infinitely elastic. D) infinitely elastic
Economists typically suggest three choices that allow a polluter to decide how to absorb most, or perhaps all, of the social costs of its actions, which are
A) continuing to overproduce the good, lowering the price of the good, or cutting output. B) reducing the pollution-causing activity, changing production techniques, or paying a price to pollute. C) installing pollution abatement equipment, paying to pollute, or just ignoring the issue. D) paying a pollution tax, continuing to use existing production techniques, or continuing the polluting behavior without regard to the social implications.
Price discounts to selected buyers with the intent of driving out smaller competitors is:
a. widespread in all industries. b. common in the retailing industry only. c. illegal under the Robinson-Patman Act. d. allowed if the four-firm concentration ratio is less than 50 percent. e. beneficial to consumers in the long run.