Food Fanatics caters meals where their cost for producing an extra meal is $20 . Each of their meals is standard and sells for $25 . At this rate what should the company do?
a. Produce more meals and increase their profit
b. Produce fewer meals and increase their profit
c. Not change production
d. None of the above
a
Economics
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Market power is illegal
A) True, no one is allowed to charge a price greater than marginal cost. B) False. C) True, no one is allowed to charge a price greater than average cost. D) False, because market power guarantees price equal to average cost.
Economics
When estimating a cubic short-run production function Q = AL3 + BL2 using linear regression analysis, you must
A. convert the right-hand-side variables to logarithms. B. suppress the intercept term (regress through the origin). C. transform the equation into linear form by defining L3 and L2 as L3 and L2, respectively. D. both a and b E. both b and c
Economics