If you were in the donut-making business, which of the following would most likely not be an explicit cost?
a. salaries
b. sales taxes
c. utilities, such as gas and electricity
d. insurance
e. the time you put into running the business
E
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Governments sometimes subsidize domestic industries. When this occurs
A) the governments will not impose tariffs. B) the subsidized sell less in international markets because it is more profitable to sell at home. C) the subsidized industries have an advantage on international markets relative to non-subsidized firms. For this reason, other countries often impose tariffs on the subsidized imports. D) the subsidized industries have an advantage on international markets relative to nonsubsidized firms. However, this is not an argument for imposing tariffs and tariffs would violate international agreements.
If a firm produces 10 units, TC=$100 . When the firm increase its output to 15 units, TC= $150 . The firm's AVC equal to
a. $50 b. $100 c. $5 d. $10