Author Question: A manager of a clothing firm is deciding whether to add another factory in addition to one already ... (Read 38 times)

anjilletteb · **on:** Jul 1, 2018

A manager of a clothing firm is deciding whether to add another factory in addition to one already in production. The manager would compare
a. The total revenue gained from the two factories to the total costs of running the two factories.
b. The marginal revenue expected from the second factory to the total costs of running the two factories.
c. The marginal revenue expected from the second factory to the marginal cost of the second factory.
d. The total revenue gained from the two factories to the marginal costs of running the two factories.

Question 2

An airline wants to introduce a charge for snacks on flights. Why would it not be such a good idea?
a. Passengers would be less likely to buy snacks
b. Passengers would be more likely to carry their own snacks onboard
c. Passengers would feel nickel-and-dimed and would switch airlines
d. All of the above