Exhibit 6-9 Cost schedule for firm X
OutputQuantity
Total FixedCost
Total VariableCost
0
$100
$ 0
1
100
50
2
100
84
3
100
108
4
100
127
5
100
150
As shown in Exhibit 6-9, the total cost of producing 4 units is:
A. zero.
B. $227.
C. $250.
D. $100.
Answer: B
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When all variables start out at their long-run equilibrium levels, the most important determinant of long-run swings in nominal exchange rates is
A) a shift in relative money supply levels. B) a shift in relative money supply growth rates. C) a change in relative output demand. D) a change in relative output supply. E) a change in relative inflation rates.
An example of a leading variable in the US is
A) GDP. B) investment is structures. C) the consumer price index. D) housing starts.
If the MPP of labor is positive, the total revenue will grow with each additional worker hired. Yet firms stop hiring before MPP reaches zero because
a. the firm's physical capacity (factory) is limited, that is, the firm's ability to hire is limited by space b. there isn't a sufficient supply of workers at the wage rate paid by the firm c. the wage rate would have to increase, which reduces MPP d. they maximize their gains from hiring at MRP = wage rate and that does not occur at MPP = zero e. marginal revenue product will become negative before MPP does
Average variable cost equals
A. TC/Q. B. TVC/Q. C. TFC/Q. D. change in total cost/change in output.