Author Question: Sue's Sea Shells by the Sea Shore is a perfectly competitive firm selling sea shells at the market ... (Read 215 times)

j.rubin · **on:** Jun 29, 2018

Sue's Sea Shells by the Sea Shore is a perfectly competitive firm selling sea shells at the market price of 2 per dozen. Sue's Sea Shells by the Sea Shore has fixed costs of 40 per day and a variable cost schedule in the table above.

The profit-maximizing level of output for Sue's Sea Shells by the Sea Shore is A) 202 dozen sea shells by the sea shore per day.
B) 204 dozen sea shells by the sea shore per day.
C) 205 dozen sea shells by the sea shore per day.
D) 206 dozen sea shells by the sea shore per day.

Question 2

If green bikes and brown bikes are perfect substitutes, the corresponding indifference curves

A) are horizontal.
B) intersect each other.
C) are vertical.
D) have constant slope.