Refer to Scenario 9.9 below to answer the question(s) that follow. SCENARIO 9.9: Sponsors invest $250,000 in a new greeting card business on the promise that they will earn a return of 10% per year on their investment. The business sells 52,000 greeting cards per year. The fixed costs for the business include the return to investors and $79,000 in other fixed costs. Variable costs consist of wages ($1,000 per week) plus materials, electricity, etc. ($3,000 per week). The business is open 52 weeks per year.Refer to Scenario 9.9. The business is earning exactly a normal profit. Thus, the average price per greeting card must be
A. $1.52.
B. $2.
C. $4.
D. $6.
Answer: D
Economics
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Refer to Scenario 10.9. What is the profit maximizing level of output?
A) 0 B) 30 C) 45 D) 60 E) none of the above
Economics
Refer to the below graph which shows the supply and demand for unionized manufacturing workers. The initial equilibrium point is point 1. There is an increase in the demand for manufactured goods while at the same time health benefits for unionized manufacturing workers also increase. Which point would represent the new equilibrium?
A. 3
B. 4
C. 5
D. 6
Economics