A firm is producing 300 units of output at a total cost of $6,000, with a variable cost of $5 per unit. What is the firm’s average fixed cost?

A donut shop has noticed that when they increase the price of chocolate donuts by 5%, the quantity demanded of breakfast sandwiches decreases by 1%. The cross-price elasticity of demand for breakfast sandwiches is _____, so the two foods are _____.

To maximize profits (independent of the type of a market the firm is in), a firm should produce where

Suppose the equilibrium price for renting an apartment is $800 per month. Concerned about the cost to tenants, the government imposes a price ceiling of $400 per month. This policy will _____.

In production theory, the short run is defined as _____ and the long run is defined as _____.

Refer to the following figure. Suppose a firm spends $4,000 per day producing a good. The wage rate per worker is $400 per day and rental rate per unit of capital is $1,000 per day. The firm’s isocost line at the current expenditure level is represented by

Suppose that the inverse demand in a market is P = 100 – 2Q. A firm’s marginal cost is constant and equal to $50. If the marginal cost increased from $50 to $60 and the firm is a monopoly, then it would raise its price _____. If the marginal cost increased from $50 to $60 and the firm operates in a perfectly competitive market, then the market price would _____.

The demand and supply of detergent are given by QD = 7,000 – 1,000P and QS = 1,000P – 1,000, where P is price per gallon and Q is in gallons. What happens at a price ceiling of $2 per gallon?

A firm is producing 8 units of output at an average total cost of $40. When the firm produces 9 units of output, average total cost rises to $54. What is the marginal cost of the 9th unit of output?

In a perfectly competitive industry, the equilibrium price is $10, and the minimum average total cost of the industry’s firms is $20. If this is a constant-cost industry, we can expect that in the long run, firms will _____ the market, shifting the industry’s short-run supply curve _____.