Suppose Sarah owns a small company that makes wedding cakes. The accompanying table shows how Sarah's total cost varies depending on the number of wedding cakes she makes each day.Number of Cakes Per DayTotal Cost Per Day0$1001$1802$2203$3004$4005$5206$660 If the market for wedding cakes is perfectly competitive, and wedding cakes sell for $95 each, then Sarah should produce ________ cakes per day.
A. 5
B. 3
C. 6
D. 0
Answer: B
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Answer the following statement true (T) or false (F)
Productivity growth is important because: a. it is the only way an economy can increase GDP
b. a small decrease in productivity growth causes a large decline in GDP. c. a large increase in productivity growth causes a small decrease in GDP. d. it causes an increase in the quantity of all resources available to an economy. e. it ultimately increases a nation's standard of living.
A profit-maximizing monopolist will stop production while MR is still greater than MC.
Answer the following statement true (T) or false (F)
For most producing firms:
A. marginal cost rises as output is carried to a certain level, and then begins to decline. B. total costs rise as output is carried to a certain level, and then begin to decline. C. average total costs rise as output is carried to a certain level, and then begin to decline. D. average total costs decline as output is carried to a certain level, and then begin to rise.