Q: Christine has purchased five bananas and is considering the purchase of a
Christine has purchased five bananas and is considering the purchase of a sixth. It is likely she will purchase the sixth banana if a. the marginal value she gets from the sixth banana is lower th...
See AnswerQ: Buyers consider Marlboro cigarettes and Budweiser beer to be complements. If
Buyers consider Marlboro cigarettes and Budweiser beer to be complements. If Marlboro just increased its prices, what would you expect to occur in the Budweiser market? a. Demand would rise, and Bud...
See AnswerQ: Which of the following is the reason for the existence of consumer
Which of the following is the reason for the existence of consumer surplus? a. Consumers can purchase goods that they “want” in addition to what they “need.” b. Consumers can occasionally purchase p...
See AnswerQ: A bakery currently sells chocolate chip cookies at a price of $
A bakery currently sells chocolate chip cookies at a price of $16/dozen. The MC is $8/dozen. The cookies are becoming more popular with customers and so the bakery owner is considering raising the pr...
See AnswerQ: Suppose your firm adopts a technology that allows you to increase your
Suppose your firm adopts a technology that allows you to increase your output by 15%. If the elasticity of demand is -3, how should you adjust price if you want to sell all of your output? a. 5% low...
See AnswerQ: A firm is thinking of hiring an additional worker to their organization
A firm is thinking of hiring an additional worker to their organization who can increase total productivity by 100 units a week. The cost of hiring him is $1,500 per week. If the price of each unit is...
See AnswerQ: A retailer has to pay $9 per hour to hire 13
A retailer has to pay $9 per hour to hire 13 workers. If the retailer only needs to hire twelve workers, a wage rate of $7 per hour is sufficient. What is the MC of the 13th worker? a. $117. b. $...
See AnswerQ: Which type of organizational form has the benefit of closer coordination to
Which type of organizational form has the benefit of closer coordination to serve a particular product or geographic area? a. Profit centers. b. Functional organizations. c. M-form organizations. d....
See AnswerQ: If a firm’s AC is rising then a. MC is
If a firm’s AC is rising then a. MC is less than AC. b. MC is rising. c. MC is greater than AC d. the firm is making an economic profit.
See AnswerQ: A company is producing 15,000 units. At this output
A company is producing 15,000 units. At this output level, MR is $22 and the MC is $18. The firm sells each unit for $48 and average total cost is $40. What can we conclude from this information? a. T...
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