Author Question: Suppose a publisher faces the following costs of producing 10,000 newspapers each month: 5,500 cost ... (Read 31 times)

lracut11 · **on:** Jun 30, 2018

Suppose a publisher faces the following costs of producing 10,000 newspapers each month: 5,500 cost of labor; 2,200 monthly mortgage payment; 250 cost of electricity to run the printing presses; 800 for ink and paper; and 200 in city property taxes (based on the value of the building and land). Its total variable costs are:
a. 8,950.
b. 8,750.
c. 6,550.
d. 6,300.
e. 5,500.

Question 2

The concept of invisible hand introduced by Adam Smith explains:
a. why people act in their own best interests.
b. why the government intervenes to overcome failures in private markets.
c. how people, acting out of self-interest, unintentionally promote the general good.
d. how comparative advantage and specialization promote international trade.
e. how the creation of goods and services generates its own demand by creating employment and income.