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Author Question: When Kathryn spends her entire budget and equates marginal utility per dollar across all goods, then ... (Read 50 times)

bclement10

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When Kathryn spends her entire budget and equates marginal utility per dollar across all goods, then Kathryn's total utility is maximized.
 
  Indicate whether the statement is true or false

Question 2

The Karaoke Channel Online streams professional-grade karaoke for 9.95 a month. Suppose Karaoke Channel Online has a constant marginal cost of 1 per customer and total fixed cost is 20,000. The profit maximizing number of customers is 10,000.
 
  Several competitors start to advertise online. Karaoke Channel Online now spends 5,000 a month on advertising and the profit maximizing number of customers increases to 12,000. What is Karaoke Channel Online's average total cost before the advertising begins? A) 3
  B) 2
  C) 1
  D) 2.66



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manuelcastillo

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Answer to Question 1

TRUE

Answer to Question 2

A




bclement10

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Reply 2 on: Jun 29, 2018
Thanks for the timely response, appreciate it


ryansturges

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

 

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