Fast Food Terminals Taco Casa is considering installing touch screen terminals for patrons to place their food orders. They discovered that installation costs at stores with four screens were $60,000 but were $80,000 at stores with six terminals. What are the marginal costs of installing another terminal at a location?

FC + 4×MC = $60,000 and FC + 6×MC = $80,000 . Subtracting the first equation from both sides yields 2×MC = $20,000 or MC = $10,000.

Economics

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Suppose Johnny Stroller sells 12, 25, and 75 year-old scotch in under black, red, and blue labels. Suppose the storage costs are zero and the initial production costs are the same. What is the implied (approximate) interest rate if black sells for $18, red for $34 and blue for $388

a. 2 b. 5 c. 8 d. 10

Economics

In the long run, a year-long drought that destroys most of the summer's wheat crops causes permanently:

A. higher prices. B. lower prices. C. lower output. D. None of these is true.

Economics