Robin owns a horse stables and riding academy and gives riding lessons for children at "pony camp.". Her business operates in a competitive industry. Robin gives riding lessons to 20 children per month. Her monthly total revenue is $4,000 . The marginal cost of pony camp is $250 per child. In order to maximize profits, Robin should
a. give riding lessons to more than 20 children per month.
b. give riding lessons to fewer than 20 children per month.
c. continue to give riding lessons to 20 children per month.
d. We do not have enough information to answer the question.
b
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Assume that the supply curve for a commodity shifts to the left and the demand curve shifts to the right, both by the same degree. Then, in comparison to the initial equilibrium, the new equilibrium will be characterized by:
A) a lower price and the same quantity. B) the same price and quantity. C) a lower price and quantity. D) a higher price and the same quantity.
Which of the following is true? a. A person's wage or salary is his or her opportunity cost of leisure
b. Any time that is spent working for a paid job is known as the time spent in leisure. c. An individual's decision to work in a low paying job or a high paying job is known as the labor-leisure tradeoff. d. A person who works more also always get to enjoy more leisure time. e. If an individual labor supply curve bends backward at some high wage, then the market supply curve also bends backward.
The supply of loanable funds comes from all the following, but:
A. businesses. B. individuals. C. government. D. borrowers.
The dollar value of a retail (or front-end) disposal charge needed to restore efficiency to this market would be
Use thefollowing information for any or all of Questions 16 through 18. Suppose the marginal benefits and marginal costs of tire production in the U.S. are modeled as follows, where Q is in millions: MSB = 12 – 0.4Q MPB = 12 – 0.3Q MSC = MPC = 2 + 0.1Q a. $4 c. $6 b. $2 d. $20