Happy Bagels sells its bagels for $6 each and the firm has a constant marginal cost of $4 per bagel, which is equal to its (constant) average total cost. If Happy Bagels does not sell a bagel the day it is produced, the bagel is sold as day-old for $2. If Happy Bagels is currently holding 50 bagels in inventory and the probability that Happy Bagels will sell 50 bagels or more is 0.40, which of
the following statements is true?
A) To obtain the profit-maximizing, optimal level of inventory, Happy Bagels needs to double its inventory.
B) To obtain the profit-maximizing, optimal level of inventory, Happy Bagels needs to increase its inventory.
C) To obtain the profit-maximizing, optimal level of inventory, Happy Bagels needs to decrease its inventory.
D) Happy Bagels is holding the profit-maximizing, optimal level of inventory.
C) To obtain the profit-maximizing, optimal level of inventory, Happy Bagels needs to decrease its inventory.
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A firm sells 150 units of output at a price of $8 each. The economic cost of producing the 150 units of output is $1,000 . Calculate the firm's level of economic profit
What will be an ideal response?
Which of the following is NOT necessary in order for a monopolist to practice effective price discrimination?
A) The marginal cost of providing the same good to different groups of buyers must be different. B) The monopolist must be able to segregate its market into different submarkets. C) The buyers in various markets must face different price elasticities of demand. D) The monopolist must have a downward sloping demand curve.
An individual in the US wants to buy a car from England which costs 12,00 . pounds. If the exchange rate is $1.75/pound, how much will it cost him in dollar terms?
a. $21,000 b. $6,800 c. $12,000 d. Need more information
In the 1990s, the United States eliminated its budget deficit and expanded the money supply. This should have led to
A. lower real interest rates and a depreciation of the dollar. B. lower real interest rates and an appreciation of the dollar. C. higher real interest rates and a depreciation of the dollar. D. higher real interest rates and an appreciation of the dollar.