The market price for wallets is $20 . Your technology is such that at your most efficient production point, the average total cost of producing a wallet is $2.50 . Your manager runs into your office and shouts, "Boss! Average costs are rising! Average costs are rising!" To make a profit-maximizing decision, you should:
a. d or e.
b. immediately stop production.
c. completely ignore your manager.
d. ask the manager about the marginal cost.
e. ask the manager about the average total cost.
d
You might also like to view...
In 2014, the NCAA was the subject of two antitrust lawsuits related to video games. The NCAA reached a settlement in which it agreed to
A) pay current and former athletes whose names or images had been used in NCAA-branded video games. B) split into two separate entities, one which monitors college athletics and the other which markets products. C) stop authorizing the production of NCAA-branded video games. D) allow schools to pay athletes so it could continue to use their images in the video games.
If the crowding-out effect is strong, how will the potency of discretionary fiscal policy be affected?
a. It will make fiscal policy more potent. b. It will make fiscal policy less potent. c. The potency of fiscal policy will be unaffected. d. The potency of contractionary will be reduced.