A firm's average fixed cost when producing 2,000 units of output equals $10 . When only 1,000 units of output are produced:
a. AFC must still equal $10

When firms use cost-plus pricing in a market,

a. each firm determines its price based on other firms' costs and prices. b. it may appear as though firms are colluding in price when they actually are not. c. prices of different firms diverge widely. d. each firm falls short of maximizing profit as they charge the same price irrespective of their costs. e. each firm sells only to its most-favored customer.

Suppose that George goes to his favorite ice cream store and buys three single -dip cones, the first for three dollars, the second for two dollars, and the third for one dollar, but enjoys no consumer surplus from the experience. We know that George must

a. have paid the same price for each cone b. have been cheated by the ice cream store-owner c. not like ice cream very much d. have paid prices for the cones that correspond to points on his demand curve e. not have maximized total utility that day