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Question
The table below lists the short-run costs for One Guy's Pizza. If One Guy's can sell all the output they produce for $12 per unit, how much should One Guy's produce to maximize profits? Does One Guy's Pizza earn an economic profit in the short-run?| Q | TFC | TVC | ATC | AVC | MC | Profits |
| 58 | 100 | 336.4 | ||||
| 59 | 100 | 348.1 | ||||
| 60 | 100 | 360 | ||||
| 61 | 100 | 372.1 |
Answer
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Related questions
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B) NPV is understated
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For net present value calculations, the rate of return that one could earn by investing in another project with similar risk is known as the:
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Q:
The real interest rate is
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Q:
The first term in an NPV calculation is usually
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Q:
The "NPV Criterion" is that a firm should invest in a new capital project if
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Q:
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Suppose a labor market has perfectly inelastic supply that is composed of union and non-union workers, and both groups of workers initially earn the perfectly competitive wage. What happens to the equilibrium employment level and wage for union workers if the union exercises its bargaining power?
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Q:
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Q:
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A) No one
B) Everyone
C) The last factor of production hired
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Q:
Scenario 14.4:
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L = PL -5 MEL = 2L + 5
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A) Marginal product of labor
B) Marginal revenue product of labor
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Q:
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Q:
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Q:
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Q:
Use the following statements to answer this question:
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Q:
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Q:
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Q:
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B) is now maximizing profit.
C) should not use this factor of production because it has no potential in generating a profit.
D) can increase profit by expanding the employment of the factor of production.
Q:
An increase in technology that enhances labor productivity will likely result in:
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B) an increase in labor employment and an increase in the wage rate.
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Q:
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Q:
If leisure is a normal good, then the income effect of a decrease in wage will
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Q:
The marginal revenue product can be expressed as the
A) additional revenue received from selling one more unit of product.
B) increment to revenue received from one additional unit of input hired.
C) marginal physical product of an input times the average revenue received from the sale of the product.
D) average physical product of the input times the marginal revenue received from the sale of the final product.