5. The Abner Corporation, a retailer of television sets, wants to determine how many television sets it must sell in order to earn a profit of $6,000 per month. The price of each television set is $230, the average variable cost is $80, and Abner Corporation's monthly fixed costs are $3,000 per month. To earn a profit of $6,000 per month, Abner's required sale volume is

A. 60 Tv sets.

B. 75 Tv sets.

C. 56 TV sets.

D. 20 TV sets.

E. none of the above.

6. Many mining and mineral extraction processes tend to exhibit increasing returns to scale.Suppose copper mines have increasing returns to scale, and the existing copper mines reduce their capital and labor inputs by 25 percent in response to a global recession.What is the expected impact on copper output?

A. Output increases by less than 25 percent.

B. Output decreases by less than 25 percent.

C. Output decreases by exactly 25 percent.

D. Output decreases by more than 25 percent.

E. none of the above.

7. In a short-run production process, the marginal cost is rising and the average total cost is falling as output is increased.Thus, marginal cost is

A. below average total cost.

B. above average total cost.

C. between the average variable and average total cost curves.

D. below average fixed cost.

E. none of the above.