Suppose a firm has a variable cost function VC = 20Q with avoidable fixed cost of $50,000. What is the firm's average cost function?
A. AC = 50,000 + 20Q
B. AC = (50,000/Q) + 20
C. AC = 50,000 + 40Q
D. AC = 20
B. AC = (50,000/Q) + 20
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Welfare economics is the study of
a. taxes and subsidies. b. how technology is best put to use in the production of goods and services. c. government welfare programs for needy people. d. how the allocation of resources affects economic well-being.
Monopolistically competitive industries have only a single firm and there is a barrier to entry.
Answer the following statement true (T) or false (F)
Which statement most accurately captures the state of money today?
A) Money today includes currency, bank deposits and checks. B) Money today includes currency and checks but not bank deposits. C) Money today includes bank deposits and currency but not checks. D) Money today includes bank deposits and checks but not currency. E) Money today includes checks and credit cards.
Suppose the market for loanable funds is in equilibrium. If disposable income increases, the equilibrium real interest rate ________ and the quantity of loanable funds ________
A) falls; increases B) falls; decreases C) rises; decreases D) rises; increases