Help with homework?
a. essential goods may be cheap while nonessential goods may be expensive. b. the marginal utility of certain products increases, rather than diminishes. c. essential goods are always higher priced than nonessential goods. d. we sometimes fail to use money as a standard of value.
2 For most producing firms:
a. marginal cost rises as output is carried to a certain level, and then begins to decline. b. total costs rise as output is carried to a certain level, and then begin to decline. c. average total costs decline as output is carried to a certain level, and then begin to rise. d. average total costs rise as output is carried to a certain level, and then begin to decline.
3 Assume that in the short run a firm is producing 100 units of output, has average total costs of $200, and average variable costs of $150. The firm's total fixed costs are:
a. $5,000. b. $500. c. $.50. d. $50.
4 In economics, a firm earns a normal profit when its total revenue equals its total economic costs.
a. True b. False
Answer:
First of all, do your own homework. You should have a text book to help you out with these things. I will give you some hints for each of these, but I am not going to give you the answers.
1. Think about diamonds and water. Diamonds are very expensive even though they do nothing for you, they are just pretty to look at. Water on the other hand, keeps you alive, but compared to most things it is pretty cheap! This seems odd when you think about it, as why would the thing that does nothing for you be more expensive? I will give you this one, because those answer options are incredibly vague and kind of dumb, it's (a).
2. This is one you are just going to have to look through your book for. There should be some graphs in your book to make these easier to figure out. Way to many things going on to explain it all. I will give you this hint: total costs (total or average) never go down after a while. They may go down a bit initially as you take advantage of things like factories (fixed costs), but they will never, in the long term, go down again once they start to rise.
3. Fixed costs are things like factories or large machinery. These are things that you can't get rid of or change easily. Non-fixed, or variable, costs are things like the materials you use in your product, or your labor, which are much easier to stop (you just don't order your next batch or you fire people). Also, don't forget to factor in that you are dealing with 100 units.
4. Again, read your text book. Profits can be a tricky thing in economics because their are different kinds of profit. There is economic profit, nominal profit, etc. Note that this question is about nominal profit.
Sorry I'm not just giving you the answers, but I'm not going to help you not learn this stuff!
The answers post by the user, for information only, FunQA.com does not guarantee the right.
More Questions and Answers: