If total costs are $18,000 for the year, and the firm has fixed costs of $12,000, what is the level of the firm's variable costs?
What will be an ideal response?
Since total cost is equal to fixed cost plus variable cost, variable cost must be equal to $6,000.
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An indifference curve shows all:
A. possible equilibrium positions on an indifference map. B. equilibrium combinations of two products that are obtainable with a given money income. C. combinations of two products yielding the same total utility to a consumer. D. possible combinations of two products that a consumer can purchase, given her income and the prices of the products.
What information does the government need to support an assertion that the 20-unit abatement standard is allocatively efficient?
Assume that there are two firms, each emitting 20 units of pollutants into the environment, for a total of 40 units in their region. The government sets an aggregate abatement standard (AST) of 20 units. The polluters' cost functions are as follows, where the dollar values are in thousands: Polluter 1: TAC1 = 10 + 0.75(A1)2, Polluter 2: TAC2 = 5 + 0.5(A2)2, MAC1 = 1.5A1, MAC2 = A2.