Author Question: Ted's Pancake Kitchen suffers a short-run loss. When should Ted decide to shut down rather than ... (Read 193 times)

future617RT · **on:** Jun 29, 2018

Ted's Pancake Kitchen suffers a short-run loss. When should Ted decide to shut down rather than continue to produce?

A) if his Kitchen's revenue is less than its fixed costs
B) if his Kitchen's revenue is less than its total costs
C) if his Kitchen's revenue is less than its variable costs
D) if his Kitchen's revenue is less than its explicit costs

Question 2

Grace Makutsi finally bought a pair of blue shoes that she had been coveting for a long time. In less than a week she discovered that the shoes were uncomfortable. Grace went back to wearing her old pair and stashed away the new pair.

When asked by her boss, Mme. Ramotswe, why does she not simply give away the new pair, she said: But I paid so much for them. Grace's behavior
A) supports the endowment effect which states that ownership of an item makes it more valuable.
B) is rational because the more you pay for an item the more valuable it is.
C) ignores the fact that the purchase price is now a sunk cost and has no bearing on whether she should give them away or not.
D) is rational: she should not discard a valuable item.

kilada · **Reply #1 on:** Jun 29, 2018

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Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.

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