In Figure 32.1, at the market equilibrium price-quantity combination, the total variable cost to producers is
A. 0HGQD.
B. 0HCQ*.
C. 0ABQD.
D. 0HEQS.
Answer: B
Economics
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Indicate whether the statement is true or false
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If no fiscal policy changes are implemented to fight inflation, suppose the aggregate demand curve will exceed the current aggregate demand curve by $900 billion at any level of prices. Assuming the marginal propensity to consume is 0.90, this increase in aggregate demand could be prevented by:
A. increasing government spending by $500 billion. B. increasing government spending by $140 billion. C. decreasing taxes by $40 billion. D. increasing taxes by $100 billion.
Economics