If Angelo's Pizza Restaurant has a constant marginal cost of $75 for each additional table in the restaurant and a constant marginal cost of $5 for operating each additional table, what is Angelo's long-run marginal cost per table?
A) $70 B) $5 C) $80 D) $75
C) $80
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Based on the answer above, the price for peanut butter_____________ and the quantity demanded for peanut butter ____________
a. Uncertain; decreases b. Decreases; increases c. Decreases; uncertain d. Increases; uncertain
A consumer's budget constraint for goods X and Y is determined by how much the consumer likes good X relative to good Y
a. True b. False Indicate whether the statement is true or false
For many pure public goods like fireworks displays, weather forecasts, and television broadcasts the marginal cost of serving one more consumer is ________, and the optimal quantity of the public good occurs when ________.
A. zero; provision is infinite. B. zero; the marginal benefit of the public good equals zero. C. greater than the average cost; the government provides the good. D. determined by average cost rather than marginal cost; price equals average cost.
Suppose the price of crude oil used to produce gasoline rises significantly. At the same time, consumers purchase hybrid cars in great numbers. In the market for gasoline, demand shifts to the ________ and supply shifts to the ________
A) left, left B) left, right C) right, left D) right, right