The demand for dishwashers facing the AllClean Co. is given in the figure above. The firm manufactures dishwashers in two plants. MC1 and MC2 are the marginal cost curves for those two plants. What price should the firm set?
A. $25
B. $30
C. $40
D. $45
E. $55
Answer: E
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Consider the accompanying payoff matrix.
If both firms offer reduced rates, each earns ________, and if both firms keep their rates high, each earns ________.
A. 500; 300 B. 300; 50 C. 50; 300 D. 300; 500
Megan used to work at the local pizzeria for $15,000 per year but quit in order to start her own deli. To buy the necessary equipment, she withdrew $20,000 from her inheritance (which paid 8 percent interest). Last year she paid $25,000 for ingredients and $500 per month rent but had revenue of $50,000. She asked her dad the accountant and her mom the economist to calculate her costs for her.
A. Dad says her cost is $25,000 and Mom says her cost is $16,600. B. Dad says her cost is $31,000 and Mom says her cost is $35,000. C. Dad says her cost is $9,000 and Mom says her cost is $2,400. D. Dad says her cost is $31,000 and Mom says her cost is $47,600.
A bakery that produces 100 loaves of bread has a variable cost of $50 and a fixed cost of $200. Calculate the total cost, average total cost, average variable cost, and average fixed cost of the bakery
What will be an ideal response?
The competitive equilibrium determines the absolute price of each of the goods based on the endowments and marginal rates of substitution
Indicate whether the statement is true or false