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.
Correct Answer:
Verified
Q152: Refer to Scenario 9.7 below to answer
Q153: Refer to Scenario 9.8 below to answer
Q154: Refer to Scenario 9.8 below to answer
Q155: Refer to Scenario 9.9 below to answer
Q156: When firms earn above normal rates of
Q158: Refer to Scenario 9.7 below to answer
Q159: Refer to Scenario 9.7 below to answer
Q160: Refer to Scenario 9.6 below to answer
Q161: Refer to Scenario 9.9 below to answer
Q162: A firm will _ in the short
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