Refer to Figure 12-5. The firm's manager suggests that the firm's goal should be to maximize average profit. If the firm does this, what is the amount of profit that it will earn?

Suppose that a firm has only one variable input, labor, and firm output is zero when labor is zero. When the firm hires 6 workers the firm produces 90 units of output. Fixed costs of production are $6 and the variable cost per unit of labor is $10 . The marginal product of the seventh unit of labor is 4 . Given this information, what is the average variable cost of production when the firm hires

7 workers? a. $12.67 b. $11 c. 81 cents d. 75 cents

Consumers may benefit more than sellers from a subsidy to sellers if:

A. they deserve the subsidy more. B. the demand curve is relatively more elastic than the supply curve. C. the demand curve is relatively less elastic than the supply curve. D. Consumers can never benefit more than sellers from a subsidy to sellers.