George’s t-shirt shop produces 5,000 custom printed t-shirts per month. george’s fixed costs are $15,000 per month. the marginal
1 answer:
Answer: Price is $7 when sale is 5000 and $6 when sale is 7,500 units.
Explanation:
George will breakeven when his price is just sufficient to cost the total cost.
If George sells 50% more, then his sales is 7,500 units.
George will breakeven when his price is just sufficient to cost the total cost.
When sales is 5000 units price is $7. When sales is 7,500 units price is $6.
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Answer:
See the attached and the explanation below.
Explanation:
a. A production possibility curve (PPC) refers to a curve that displays different combinations of the maximum output of two goods that can be produced from a given or fixed amount of input and technology.
An example of PPC is figure (A) in the attached document.
b. When there is a major technical breakthrough in the capital goods industry and the new technology is widely adopted only in this industry, it will make the PPC to rotate outward at the capital good axis only, while consumer good axis will remain the same (see the curve and the arrow in Figure B in the attached). This implies that the break has enabled the economy to produce more of capital goods while consumer goods production level remains the same.
c. When there is a technological advance in consumer goods production, but not in capital goods production, it will make PPC to rotate outward at the consumer good axis only, while capital good axis will remain the same (see the curve and the arrow in Figure C in the attached). This implies that the break has enabled the economy to produce more of consumer good while capital good production level remains the same.
