Ernie's Earmuffs produces 200 earmuffs per year at a total cost of $2,000 and $400 of this cost is fixed. What is Ernie's average total cost?

The commons problem refers to:

a. a problem that arises when everything is privately owned. b. a situation when the resources are owned by the government and the common people have limited access to them. c. a problem that arises when government takes incorrect measures which adversely affect common people. d. a problem that arises when everyone has access to a particular resource. e. the adverse situation that arises when the government fails to take adequate measures to solve common problems.

The market demand curve is derived by summing individual demand curves horizontally

a. True b. False Indicate whether the statement is true or false