George Webb Restaurant collects on the average $5 per customer at its breakfast & lunch diner. Its variable cost per customer averages $3, and its annual fixed cost is $40,000 . If George Webb wants to make a profit of $20,000 per year at the diner, it will have to serve__________ customers per year
a. 10,000 customers
b. 20,000 customers
c. 30,000 customers
d. 40,000 customers
e. 50,000 customers
c
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The Food and Drug Administration (FDA) is an agency that would enforce
A) social regulation. B) economic regulation. C) antitrust laws. D) price discrimination.
Production possibilities curve analysis includes the idea of:
a. opportunity cost. b. scarcity. c. maximum production choices. d. all of these.
According to the law of comparative advantage,
a. individuals and nations gain when they specialize in producing those goods they consume. b. individuals and nations gain when they specialize in producing goods they can produce at a high opportunity cost and can exchange for other desired goods they can produce cheaply. c. individuals and nations gain when they specialize in producing those items for which they are the low opportunity cost producers and exchange for other desired goods they can't produce as cheaply. d. all of the above are true.
Which of the following transactions would take place in the "underground economy"?
A) Elizabeth tells her mother she's going to work but really goes to see a movie. B) Paul buys 15 gallons of gasoline for $3.29 a gallon, not realizing that $1.50 per gallon of that price goes to the government as tax revenue. C) John makes chain-link belts and necklaces and sells them at a local flea market for cash to avoid paying taxes. D) Matt bought an iPad for $499 but decided to sell it on eBay instead of keeping it.