A company is operating most efficiently when it is at
A. the break-even point.
B. the shutdown point.
C. both the break-even and shutdown points.
D. neither the break-even nor the shutdown point.
A. the break-even point.
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Ten cases of spring water are sold for $6 each, and the marginal product of the last unit of labor is 5 . If the price of a case increases from $6 to $8, then the marginal revenue product of the last unit of labor would
a. decrease by $10. b. increase by $40. c. decrease by $30. d. increase by $10. e. not change.
Recall the Application about incentives to immunize children in developing countries to answer the following question(s). This Application emphasizes the importance of:
A. wealth distribution. B. economic incentives. C. literacy rates. D. None of these.
Why is it inefficient to be overinformed?
What will be an ideal response?
Big Waves is a large water park. Suppose the individual demand for entrance into Big Waves is Qd = 50 - (2 × P) and each consumer has the same demand. Big Waves has a constant marginal cost of $5 per consumer. If Big Waves practices two-part pricing and requires a membership fee and then a separate entrance fee, what is the profit-maximizing entrance fee?
A) $200 B) $10 C) $5 D) $50