A certain firm produces and sells staplers. Last year, it produced 7,000 staplers and sold each stapler for $6. In producing the 7,000 staplers, it incurred variable costs of $28,000 and a total cost of $45,,000. In producing the 7,000 staplers, the firm's average total cost was

A certain firm produces and sells staplers. Last year, it produced 7,000 staplers and sold each stapler for $6. In producing the 7,000 staplers, it incurred variable costs of $28,000 and a total cost of $45,,000.
In producing the 7,000 staplers, the firm's average total cost was

a. $5.00
b. $5.42
c. $6.21
d. $6.43







Answer: D

Microeconomics

• An increase in the price level may be caused
• Which of the following events can cause short-term interest rates to increase?
• Suppose that wages increase sharply this year. Other things being equal a wide-spread increase in wages will have which of the following consequences for the U.S. economy?
• An unanticipated increase in inflation this year will
• If the US economy falls into a recession, then which of the following is likely to happen?
• In 1998, the U.S. economy was at full employment which means that
• Last year, real GDP grew by 5% in the U.S. which implies that
• The current wage paid for carpenters in Raleigh is $15 per hour. At that wage there are 10,000 labor hours supplied per week while the number of labor hours demanded is 12,000. It follows that
• The home building industry in Raleigh is perfectly competitive and currently in long-run competitive equilibrium. Which of the following statements is true?
• The price elasticity of demand for flights between RDU and Washington DC is equal to -3. A 20 percent decrease in air fare between RDU and D.C. will therefore result in
• Which of the following changes in the market for loanable funds can cause interest rates to go up?
• Which of the following is an example of a contractionary fiscal policy that can be used to decrease aggregate demand and prevent inflation?
• Which of the following statements about the federal budget deficit is true?
• As the economy expands the demand for money typically increases. Other things being equal, which of the following is a likely consequence of the increase in the money demand?
• Suppose the equilibrium GDP is greater than potential real GDP. Which of the following is likely?
• Current equilibrium GDP is less than potential real GDP. According to the classical model of macroeconomic equilibrium, which of the following is true?
• Suppose the price of a key productive resource such as fuel increases. Other things being equal, which of the following will be a consequence of the increase in fuel price?
• Other things being equal, which of the following can cause a recession?
• An unanticipated increase in the inflation rate during this year will
• Which of the following statements is true?
• The marginal product of textile workers in a factory is currently 3 yards of cloth while the average product is 5 yards of cloth. If another worker is hired.
• Other things being equal, an increase in the average product of labor in steel production will
• A corporation earns $10 million in revenue this year. Accounting costs are $5 million for the year. The corporation owns assets valued at $20 million and has no debts. If the opportunity cost of capital for shareholders of the corporation is 10% it follows that the corporation's economic profit is
• A $1 per gallon tax is levied on gasoline consumption. If the supply of gasoline is perfectly elastic in the long run then
• The supply of land is perfectly inelastic when

Share this

Share on FacebookPlus on Google+