The figure below shows the demand for meals at lunch and dinner for a proposed new restaurant. Suppose the marginal cost of a meal (both lunch and dinner) is constant at $10 per meal and marginal cost of providing the capacity is constant at $5 per meal. What is the profit-maximizing capacity?
A) 700 meals B) 750 meals C) 900 meals D) 600 meals
D) 600 meals
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Suppose Sarah owns a small company that makes wedding cakes. The table below shows how Sarah's total cost varies depending on the number of wedding cakes she makes each day.Number ofCakes Per DayTotal CostPer Day0$1001$1802$2203$3004$4005$5206$660If Sarah's fixed costs double, then in the short run, her profit-maximizing level of output:
A. will increase. B. will shrink to zero if she starts earning a loss. C. will decrease. D. will not change.
According to Edward Denison, during the 1929 and 1982 period, capital formation
a. was responsible for 25 percent of U.S. economic growth. b. amounted to 19 percent of U.S. economic growth. c. was considered the smallest source of U.S. economic growth. d. was the most important source of U.S. economic growth.
To stay one step ahead of the forces of competition, a firm can adopt any one of these strategies except
a. Cost reduction b. Product differentiation c. Operating where marginal benefits equal marginal costs d. Develop non-fungible valuable resources
Barter is the:
a. direct exchange of goods and services. b. exchange of goods, but not services. c. system that does not depend on a coincidence of wants. d. system used in advanced economies.