Jackson's Auto Body calculates that its total fixed costs are $3,000 per month. In a month in which the company repairs 20 cars, it finds that its total costs are $12,000 . From this, we can conclude
a. total monthly cost is $15,000
b. marginal cost is $600
c. average fixed cost is $60
d. average variable cost is $450
e. the costs are too high so the company should shut down
D
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The supply of sand is perfectly inelastic and the demand curve for sand is downward sloping. Hence, if a tax on sand is imposed,
A) sand buyers pay the entire tax. B) sand sellers pay the entire tax. C) the tax is split evenly between the buyers and sellers. D) the government pays the entire tax. E) the government collects no tax revenue because the supply is perfectly inelastic.
If an increase in the supply of a product in the market results in a decrease in price, but no change in the quantity traded, then:
A. The price elasticity of supply is zero B. The price elasticity of supply is infinite C. The price elasticity of demand is unitary D. The price elasticity of demand is zero