Both Jill and John own toothpick factories. Jill's factory has low fixed costs and high variable costs. John's factory has high fixed costs and low variable costs. Currently each factory is producing 1,000 boxes of toothpicks at the same total cost. Complete the following statement with the correct answer. If each produces
A. more, their costs will be equal.
B. less, their costs will be equal.
C. less, the costs of Jill's factory will exceed those of John's factory.
D. more, the costs of Jill's factory will exceed those of John's factory.
D. more, the costs of Jill's factory will exceed those of John's factory.
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Refer to Figure 5-2. The private profit-maximizing quantity for the firm is
A) Qa. B) Qb - Qd. C) Qb. D) Qd.
If an economy is experiencing both full employment and price stability, within the Keynesian model, a major tax reduction probably would cause
a. an increase in unemployment in the near future. b. an increase in the general level of prices unless government expenditures are also reduced. c. an increase in the interest rate since individuals will reduce their savings in response to the tax cut. d. a decrease in consumption unless the expected budget deficit is financed by selling bonds to foreigners.
Refer to the information provided in Table 8.2 below to answer the question(s) that follow.
Table 8.2 
Refer to Table 8.2. If Sherry produces zero earrings, her total fixed costs are
A. $0. B. $50. C. $100. D. indeterminate from this information.
Which formula is correct?
A) S = Yd - C B) Yd + S = C C) Yd + C = S D) Yd × S = C