Which of the following scenarios does NOT depict a rational seller?
A) The Flowery Bower calculates the marginal cost of a bouquet of red roses as $10 and sells it at $45.
B) United Airlines determines the marginal cost of an extra passenger to be $55 and sells a discount seat for $150.
C) An auto-rickshaw driver in New Delhi, India, calculates a trip to have a marginal cost of 350 rupees and accepts a ride request for 500 rupees.
D) Main Street Bakery calculates the marginal cost of a multilayer red velvet cake sd $9 and sells it for $8.
Correct Answer:
Verified
Q10: When plotting a supply curve
A)the quantity supplied
Q11: The supply curve is upward-sloping because
A)sellers can
Q12: The Rational Rule for Sellers involves applying
A)only
Q13: The Rational Rule for Sellers says that
Q14: When you calculate marginal costs, they should
Q16: Which of the following scenarios depicts a
Q17: Rising marginal costs imply
A)falling variable costs.
B)rising fixed
Q18: A supply curve
(i) plots the quantities a
Q19: Consider the data in the table. The
Q20: The market supply curve is upward-sloping because
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