If total cost is $1,000 when output is zero, and total cost is $1,200 when output is one, and total cost is $1,500 when output is two, then which of the following is true?
a. Total fixed cost is $1,500.
b. The marginal cost of producing the first unit of output is $1,200.
c. The marginal cost of producing the second unit of output is $300.
d. The average fixed cost is $750 when two units of output are produced.
c
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The above figure shows the market for game day t-shirts. If the price of t-shirts is $12, then
A) the market is in equilibrium. B) there is a surplus and the price of t-shirts will fall. C) there is a shortage and the price of t-shirts will fall. D) there is a shortage and the price of t-shirts will rise. E) there is a surplus and the price of t-shirts will rise.
Under perfect competition, regarding short-run profit, a firm may find itself losing money. This is true because:
a. the firm was unable to pick the output that maximized profit b. the market conditions make the highest possible profit a negative number c. the demand for its product is weak or its costs are high d. both b and c