Exhibit 6-10 Short-run cost schedule for book publisher's hourly production
TotalOutput
TotalVariable Cost
TotalCost
0 cases of books
$    0
$200
1
  100
  300
2
  150
  350
3
  250
  450
4
  450
  650
In Exhibit 6-10, the publisher's fixed cost is equal to:

Suppose that for each firm in the competitive market for potatoes, long-run average cost is minimized at $0.20 per pound when 500 pounds are grown. If the long-run supply curve is horizontal, then

A) some firms will enjoy long-run profits because they operate at minimum average cost. B) the long-run price will be $0.20 per pound. C) each consumer will purchase $100 worth of potatoes. D) the long-run price will be set just above $0.20 per pound.

Considering the price-elasticity of demand for wheat, we would expect that if the supply of wheat increases, other factors constant, then wheat farmers' total revenues would:

A. Increase because the demand is price-inelastic B. Decrease because the demand is price-inelastic C. Increase because the demand is price-elastic D. Decrease because the demand is price-elastic