Author Question: Mr. Sweet opened a candy store. He rented a building for 30,000 a year. During the first year of ... (Read 96 times)

lbcchick · **on:** Jun 29, 2018

Mr. Sweet opened a candy store. He rented a building for 30,000 a year. During the first year of operation, Sweet paid 40,000 to his employees, 10,000 for utilities, and 20,000 for goods he bought from other firms. His total revenue was 135,000.

Sweet's best alternative to running this candy store is to work for Wal-Mart as a sales associate for 15,000 a year. What is Sweet's total opportunity cost? A) 15,000
B) 100,000
C) 135,000
D) 115,000

Question 2

The figure above portrays a total revenue curve for a perfectly competitive firm. The firm's marginal revenue from selling a unit of output

A) equals 0.50.
B) equals 1.00.
C) equals 2.00.
D) cannot be determined.