If a firm is producing 10 pizzas, and the price of a pizza = $3.50, the AFC = $.80, and AVC = $3.00, then the firm is
a. earning a profit of $.80 per pizza
b. earning a total profit of $8.00
c. losing $.30 per pizza
d. losing a total of $6.00
e. earning a profit of $.50 per pizza
C
Economics
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To an economist, theory can be thought of as
a. abstraction for the sake of argument. b. one person's opinion, which is just as good as another's. c. another term for the description of a situation. d. beliefs which cannot necessarily be verified. e. explanation of mechanisms behind observed phenomena.
Economics
Which of the following would be classified as a negative supply shock?
A. An increase in the legal minimum wage B. A decrease in the price of oil C. An increase in demand for exports D. An increase in government purchases
Economics