Assume that you know the following cost information about Fred's widget company: Its fixed cost is $9, and its total variable cost is $6 for 1 unit; $11 for 2; $ 15 for 3; 20 for 4; and 26 for 5 . Given the above information,
a. the marginal cost of providing the second unit is $5.
b. the total cost of producing 4 units is $29
c. the average total cost of producing five units is $7.
d. all of the above are true.
d
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Textbook examples of trade between two nations are simplified in order to show how two nations both benefit from trade. These examples are misleading because
A) in the real world, rich countries can take advantage of poor countries. B) they do not account for the reduction in wages that occurs in both countries as a result of trade. C) some individuals in both countries may be made worse off because of trade. D) trade restrictions are likely to be imposed as trade grows over time.
The paper money or currency in the United States essentially represents a(n)
A. liability of the U.S. Treasury. B. liability of the Federal Reserve System. C. liability of commercial banks and savings institutions. D. asset of the Federal government.