At Nick's Bakery, the cost to make homemade chocolate cake is $4 per cake. As a result of selling five cakes, Nick experiences a producer surplus in the amount of $17.50 . Nick must be selling his cakes for
a. $6.50 each.
b. $7.50 each.
c. $9.50 each.
d. $10.50 each.
b
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By raising the discount rate, the Federal Reserve ________ banks from borrowing more reserves
A) short-changes B) prohibits C) discourages D) encourages
If the price of coffee increases from $2 per pound to $5 per pound, how does the quantity of coffee supplied by Juan change?
a. It decreases by 30 pounds per year.
b. It decreases by 50 pound per year.
c. It increases by 30 pounds per year.
d. It increases by 50 pounds per year.
The mistake of inferring causality from two events happening one after the other is called
A. the fallacy of co-dependence. B. the fallacy of composition. C. the post hoc, ergo propter hoc fallacy. D. Ockham's razor.
A firm suffering short-run losses will continue to operate rather than shut down when price is less than its average variable costs.
Answer the following statement true (T) or false (F)