Suppose there is a firm with a fixed cost of $10 and the firm produces furniture that requires wood and labor as inputs. When does the firm's average total cost curve intersect the average variable cost curve?
a. when the price of furniture falls below $10
b. at the minimum of the average total cost curve
c. at the point of greatest labor efficiency
d. when the marginal cost curve intersects the average variable cost curve
e. never
E
You might also like to view...
Suppose a tax is imposed on each new hearing aid that is sold. The supply curve is a typical upward-sloping straight line, and the demand curve is a typical downward-sloping straight line. As a result of the tax, the equilibrium quantity of hearing aids decreases from 10,000 to 9,000 . and the deadweight loss of the tax is $60,000 . We can conclude that the tax on each hearing aid is
a. $60. b. $120. c. $160. d. $200.
Which of the following will create the largest increase in the money supply?
A. the Federal Reserve sells bonds and the banks choose to hold more excess reserves B. the Federal Reserve buys bonds and the banks choose to hold less excess reserves C. the Federal Reserve buys bonds and the banks choose to hold more excess reserves D. the Federal Reserve sells bonds and the banks choose to hold less excess reserves
The purchase of less than 10 percent of the shares of ownership in a foreign company is referred to as a
A) negligible investment. B) foreign indirect investment. C) foreign direct investment. D) portfolio investment.
An adverse supply shock generally decreases the price level and the real GDP
a. True b. False Indicate whether the statement is true or false