If the estimated elasticity of supply coefficient equals 0.85, then:
a. the supply curve is vertical
b. the demand curve is horizontal.
c. supply is unit elastic.
d. supply is relatively inelastic.
d
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Refer to Figure 11-9 above to solve the following problems
a. Calculate the fixed cost of production. b. Calculate the average total cost of production when the firm produces 20 units of output. c. Calculate the average variable cost of production when the firm produces 20 units of output. d. Calculate the average fixed cost of production when the firm produces 20 units of output. e. Calculate the average fixed cost of production when the firm produces 15 units of output. f. If the firm increases output from 15 to 20 units, what is the marginal cost of output?
If a model fits reality but doesn't generate testable predictions, it is of little value to economists
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