Figure 6.1 shows the cost structure of a firm in a perfectly competitive market. If the market price is $40 and the firm is currently producing the profit-maximizing output level, its total fixed cost is:
A. $2,800.
B. $5,200.
C. $7,200.
D. $9,000.
Answer: C
Economics
You might also like to view...
The above figure shows the Lorenz curves for four different countries. In which country is income most equally distributed?
A) country A B) country B C) country C D) country D
Economics
Suppose MPL = 40 and MPK = 20 and the rental rate on capital is $10 . If the level of production is currently efficient, the wage rate must be
a. $10 b. $5 c. $20 d. $40
Economics
Which of the following is an example of a private good?
a. Cable television b. Health care c. The judiciary d. Cars
Economics
Taxes cause deadweight losses because they prevent buyers and sellers from realizing some of the gains from trade
a. True b. False Indicate whether the statement is true or false
Economics