You operate a factory that produces beach towels. Your current level of output equals 2,000 towels per week. Your weekly variable cost equals $8,000 . If your total cost each week equals $9,000 . it follows that:
a. the average variable cost of production equals $2 per towel.
b. the average total cost of production equals $4 per towel.
c. the average total cost of production equals $4.50 per towel.
d. the average total cost of production equals $8 per towel.
c
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In which of the following countries would an increase in per capita income likely result in the most improvement to health status of the population? (2006 per capita incomes in PPP dollars shown in parentheses.)
a. Mexico ($13,383) b. New Zealand ($26,068) c. Germany ($32,900) d. United Kingdom ($34,084) e. United States ($44,639)
Under perfect competition, a firm is a price taker because:
A. setting a price higher than the going price results in profits. B. each firm's product is perceived as different. C. each firm has a significant market share. D. setting a price higher than the going price results in zero sales.