Total cost is equal to the
A) sum of the total fixed cost and the total variable cost.
B) sum of the average fixed cost and the average variable cost.
C) difference between the average variable cost and the average fixed cost.
D) product of the marginal cost multiplied by the average total cost.
Ques. 2Which of the following is the BEST example of a public good?
A) public transportation by bus
B) clean air
C) community swimming pools for which the user must pay a fee
D) postal services
Ques. 3In the oligopoly price-fixing game, the payoffs are the
A) profits of the firms.
B) market shares of the firms.
C) sales of the firms.
D) reputations of the firms.
Ques. 4Single-price monopolies maximize profit by producing the amount of output at which
A) total revenue is maximized.
B) price is equal to marginal cost.
C) price is equal to marginal revenue.
D) marginal revenue is equal to marginal cost.
Ques. 5In the table above, if Brent maximizes his utility by consuming 3 bags of popcorn and 3 bottles of soda, then the ratio of the price of popcorn to the price of soda is expected to be
A) 1/2.
B) 5/6.
C) 6/5.
D) 2.
Ques. 6The distribution of income in the United States is characterized by the following relationship between the mean, median, and mode incomes
A) mean income < median income < mode income.
B) mode income < median income < mean income.
C) median income < mean income < mode income.
D) mode income < mean income < median income.
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