If fixed costs are $200,000 and variable costs are $30 per unit over the relevant range of output, when 10,000 units are produced, the average total cost will be
a. $20.
b. $30.
c. $50.
d. $70.
C
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Some software firms require that applicants have passed certain standardized certification tests before being hired. This policy is necessary when
A) cheap talk does not provide a credible signal. B) cheap talk does provide a credible signal. C) the interests of the firm and the applicant converge. D) the applicant is honest about her abilities.
The length of the business cycle in any business cycle theory can vary, but the long-wave cycle (or longer wave cycle) refers to
a. war-induced business cycle theory b. the equilibrium of national income theory c. the innovation cycle theory d. interaction of the accelerator and multiplier theory e. real business cycle theory
In economic theorizing, common sense will always lead to the correct answer.
Answer the following statement true (T) or false (F)
Which of the following is always true in competitive price-taker markets?
a. There are more sellers than buyers. b. Barriers to entry into the market are low. c. The products of firms in the industry are differentiated. d. The firms never earn economic profit.