Determining the relevant cost
Which of the following is a relevant cost?
a. replacement cost
b. sunk cost
c. historical cost
d. fixed cost
e. all of the above are relevant.
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Problem: A firm that seeks to maximize its revenue is most likely to adhere to which of the following?
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Which of the following is a relevant cost? a. replacement cost b. sunk cost c. historical cost d. fixed cost e. all of the above are relevant.
Problem: Which of the following cost relationships is not true? a. AFC = AC - MC b. TVC = TC - TFC c. the change in TVC/the change in Q = MC d. the change in TC/ the change in Q = MC
Problem: When total revenue increases from $18,000 to $26,000 when quantity increases from eight to ten, marginal revenue is equal to:
A open economy has a marginal propensity to import (MPI) equal to 0.2 and a marginal propensity to consume equal to 0.7. What is spending multiplier of this economy?
What conditions must be satisfied for SAR Publisher to practice price discrimination between the two markets?
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