The capital stock is fixed at 50 units, the price of capital is $30 per unit, and the price of labor is $25 per unit.Given the above, if the firm produces 40 units of output, what is total variable cost?

Other things equal, an adverse supply shock would

a. Lower the price level b. decrease real output c. Shift AD left d. Do a. and b. but not c.

Which of the following characteristics does not fit a perfectly competitive market?

A. Numerous small firms B. Identical products produced by all firms in the market C. Each individual firm has a small amount of control over the market price D. Ease of entry and exit from the market