Bob's Baubles, Inc, sells its product for $3 each in a perfectly competitive market. If it increases its workforce from 1,000 to 1,001, its output goes from 615 to 625 per day. Bob should hire the 1,001st worker only if:
a. the wage is more than $30 per day.
b. the wage is $30 or less per day

Tara sells her organic carrots in a perfectly competitive market for a price that is just higher than her minimum average variable cost of production, but lower than her minimum average total cost of production. Which of the following statements is then true?

a. Although she is currently incurring a loss, she could restore profitability by advertising her carrots. b. She can minimize her losses by shutting down her operations now. c. She is incurring a loss, because price is less than ATC. d. She is earning a profit, because price is above AVC.

An airline decides to sell 5 seats that would otherwise remain unoccupied on a flight from California to Chicago for $300 each, instead of the regular price per ticket of $450 each. We can probably conclude that: a. The marginal cost of providing each added seat on the flight was less than $300

b. The average cost of providing each seat on the flight was less than $300. c. The marginal cost of providing each seat on the flight was less than $450 but more than $300. d. The average cost of providing each seat on the flight was $450.