You don't have enough information to answer this question. You need to know how many of each of these Alexi and Tony can sell. Even though tacos bring in less revenue per unit, if the demand is great enough, tacos can still be the most profitable overall.
For example: Say they can sell 20 tacos per hour but only 2 cuban sandwiches per hours. They would make $40 per hour in tacos but only $14.50 in sandwiches.
Answer:
Stating True or False
P > MC, so producing more would mean that the marginal cost increases to match the market price. FALSE
P = AC, so producing more would mean that the average cost would exceed the price reducing profits. FALSE
P = MC, so producing more would mean that the marginal cost would exceed the price reducing profits. TRUE
MR < MC, so producing more would mean that the marginal cost increases to match the market price. FALSE
Explanation:
All profit-maximizing producers accept a market price (P) that is equal to the marginal cost (MC), i.e. (P = MC). At this point, the market price does not exceed the marginal costs (costs of factors of production). When = P > MC, it shows that the benefits of producing more goods exceed the production costs, to the benefit of the society. However, if P < MC, then the social costs of producing the goods exceed the social benefits, signalling that the economy should produce less.
Answer:
b.moral hazard
Explanation:
If a person borrow from bank to buy car but actually he borrow to pay lottery. in this case the person will face Moral Hazards.
Answer:
Yes, the Keynesian economists would favor this action.
Explanation:
Keynesians argue that in times of recession, the aggregate demand should be increased through government policies so that the economy recovers and output increases. The policy by Bush government put more money in the hands of people and as such their purchasing power increased. This increase in purchasing power would lead to an increase in aggregate demand according to the Keynesians.
Answer:
A. Institutional Capitalism
Explanation:
Institutional capitalism is the phenomenon whereby large institutions holds large share of the capitalistic enterprise. Capitalism in itself has to do with private companies having their own ownership of the production process. In this case, the capitalistic enterprise is done on the basis of institutional shareholding.
