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1. The amount an individual pays for insurance on his or her car is an example o

ID: 1143407 • Letter: 1

Question

1. The amount an individual pays for insurance on his or her car is an example of a(n) ________ cost.

public-good

2.

A firm’s short-run cost curves show us

how many other firms are in the industry.

3. Refer to the following table. What is the average variable cost of producing three units of the good?

$420

4. Refer to the following table. What is the total cost of producing five units of the good?

$825

5. If a competitive firm can make enough revenue to cover its variable costs, the firm will

social

Explanation / Answer

1) b) third party cost, because in insurance individuals or firms don't have to pay for all the costs resulting from an activity which makes insurance a third party cost.