Rose, who grows geraniums to sell, is currently producing a level of output at which her marginal cost equals her average variable cost. What must be true about Rose's average total cost at this level of output?
a. It is at a minimum
b. It is at a maximum.
c. It is falling with increased output.
d. It is equal to average variable cost.
c
Economics
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What is the main shortcoming of the neoclassical growth model and how does the new growth theory address this shortcoming?
What will be an ideal response?
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A $130,000 investment in new equipment this year will increase your firm's profits by $50,000 in each of the next 3 years. What is the net present value of this investment if your firm's opportunity cost of capital is 10 percent?
A) -5,657 B) 5,657 C) 124,343 D) 128,850
Economics