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 $125 each, then Sarah should produce ________ cakes per day.
A. 0
B. 6
C. 3
D. 5
Answer: D
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Three possibilities have probabilities 0.5, 0.3 and 0.2 and values $10, $20, and $30 respectively. The expected value is:
a. $15 b. $16 c. $17 d. $18
It is illegal for business to price discriminate when selling goods to other businesses unless
a. Price discounts are cost-justified b. Discounts are offered to meet competitors' price c. Both a and b d. It is not illegal for businesses to price discriminate
Suppose the MPC is 0.8 in Canada and the MPC of Home goods is 0.55. If income increases by $100 million in Canada, then the increase in consumption of domestic goods will be:
a. $25 million. b. $80 million. c. $55 million. d. $35 million.
All but which one of the following are cash transfer programs?
A. TANF. B. Supplemental Security Income (SSI). C. Low-rent public housing. D. Social Security.