Which of the following scenarios depicts a seller who is following the Rational Rule for Sellers?
A) American Airlines determines the marginal cost of an extra passenger to be $75 and sells a discount seat for $250.
B) Andy's Diner finds that the marginal cost of a fish and chips meal is $7 and lists the item for sale at $6.50.
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 315 rupees.
D) Mindy sets up a lemonade stand and calculates the cost of an additional cup of lemonade at 50 cents, and sells it for 25 cents.
Correct Answer:
Verified
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
Q15: Which of the following scenarios does NOT
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
Q21: A bakery hires a baker who can
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