What is the firm's contribution margin?
a. $1800
b. $800
c. $1000
d. $300
b
You might also like to view...
Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as 
A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting upward C. Short-run aggregate supply shifting downward D. Aggregate demand shifting leftward
Situation 35-2 ? Dan and Ann live in the same community and both can participate in two activities, producing and stealing. Refer to Situation 35-2. If Dan's MB/MC ratio for producing is currently greater than his MB/MC ratio for stealing, then he will
A. steal more and produce less. B. steal less and produce less. C. produce more and steal more. D. produce more and steal less.
Using prices to promote efficiency in the utilization of bridges,
a. higher prices should be charged for the use of the most crowded bridges. b. lower prices should be charged for the use of the uncrowded bridges. c. traffic would be equalized among the bridges where space is a scarce resource. d. All of the above are correct.
Suppose that when output is 20, marginal cost is $20, and average total cost is $30. Then which of the following is most likely to be true?
A. Average total cost is declining. B. Average total cost is constant. C. Average total cost is rising. D. Average total cost is less than average fixed cost.