Author Question: A catering company is producing at a point where its marginal costs are 25 and its fixed costs are ... (Read 60 times)

809779

  • Hero Member
  • *****
  • Posts: 579
A catering company is producing at a point where its marginal costs are 25 and its fixed costs are 5000 . At the current price of 10 it is producing 50 meals. If the demand goes up, such that they can now charge 20 per meal, how much should the firm now produce?
 a. 60 meals
 b. 70 meals
 c. 80 meals
 d. None, they should shut down

Question 2

Which of the following is an example of a metering strategy
 a. A supermarket offers free parking space but charges higher for grocery
 b. A television reseller spends time making sure that the picture quality of the bargain priced sets is fuzzy
  c. Razors are sold at unit cost while razor blades have large profit margins
 d. All of the above



Gabe

  • Sr. Member
  • ****
  • Posts: 321
Answer to Question 1

d

Answer to Question 2

c



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

A strange skin disease referred to as Morgellons has occurred in the southern United States and in California. Symptoms include slowly healing sores, joint pain, persistent fatigue, and a sensation of things crawling through the skin. Another symptom is strange-looking, threadlike extrusions coming out of the skin.

Did you know?

Hyperthyroidism leads to an increased rate of metabolism and affects about 1% of women but only 0.1% of men. For most people, this increased metabolic rate causes the thyroid gland to become enlarged (known as a goiter).

Did you know?

A seasonal flu vaccine is the best way to reduce the chances you will get seasonal influenza and spread it to others.

Did you know?

Human stomach acid is strong enough to dissolve small pieces of metal such as razor blades or staples.

Did you know?

Giardia is one of the most common intestinal parasites worldwide, and infects up to 20% of the world population, mostly in poorer countries with inadequate sanitation. Infections are most common in children, though chronic Giardia is more common in adults.

For a complete list of videos, visit our video library