BathGroom0675134183222251270
Kaitlyn and Larissa have formed a dog bathing and grooming business. The number of dogs they can bathe or groom in any given day is depicted in Table 2.1. As they groom more dogs, the opportunity cost of bathing additional dogs:
A. falls.
B. rises.
C. remains constant.
D. depends on the prices being charged.
Answer: A
You might also like to view...
Lattes at Starbucks are allocated to individuals in society through what type of method?
A) lottery B) contest C) sharing equally D) market price E) personal characteristics
We may be tempted to determine the optimal level of advertising expenditures at the point where the last dollar spent on advertising generates an additional dollar of sales revenue (i.e, the marginal revenue of advertising equals one)
In general, this rule will not allow the firm to maximize profits because it ignores the: A) price elasticity of demand. B) marginal cost of additional sales generated by the advertising. C) advertising-to-sales ratio. D) fixed costs of advertising.
Generally, investors expect that projects with high expected net present values also will be projects with
a. low risk b. high risk c. certain cash flows d. short lives e. none of the above
If a firm experiences constant returns to scale at all output levels, then its long-run average total cost curve would
a. slope downward. b. be horizontal. c. slope upward. d. slope downward for low output levels and upward for high output levels.