If the average cost of a product is $10 per unit and the price is $5, the firm is losing money
a. True
b. False
Indicate whether the statement is true or false
True
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The figure above shows the supply and demand for pizza
a. What is the efficient level of output? b. If 70,000 pizzas are produced, what area represents the deadweight loss? c. Why does the deadweight loss in part (b) occur? d. If 20,000 pizzas are produced, what area represents the deadweight loss? e. Why does the deadweight loss in part (d) occur?
Twenty years ago a stove cost $300 and a refrigerator cost $1,500. Today a stove costs $600, while a refrigerator costs $1,800. Which of the following statements is TRUE?
A) The relative price of stoves and refrigerators has not changed. B) The relative price of a refrigerator has increased. C) The relative price of a stove has increased. D) The money price of a refrigerator has fallen.