This table shows the total costs for various levels of output for a firm operating in a perfectly competitive market.PriceQuantityTC$500$10.00$501$20.00$502$27.50$503$77.50$504$147.50$505$250.00According to the table shown, when 1 unit is produced:
A. marginal revenue exceeds marginal costs, and the firm should produce more.
B. marginal costs exceed marginal revenue, and the firm should produce more.
C. marginal revenue exceeds marginal costs, and the firm should produce less.
D. marginal costs exceed marginal revenue, and the firm should produce less.
Answer: A
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Suppose Ariana deposits $75,000 in her bank. If the reserve ratio is 20 percent, this will lead to a maximum increase of ________ in checking account balances throughout all banks
A) $15,000 B) $375,000 C) $750,000 D) $1,500,000
Which of the following best describes marginal cost?
a. The sum of fixed cost and variable cost b. Total cost divided by the quantity of output produced c. Variable cost divided by the quantity of output produced d. Change in total cost resulting from a one-unit change in output