Answer:
Meatball prices will exceed marginal cost.
Explanation:
Taking on account that Angelo is the only meatball's provider in the area, he is the only actor in his market segment. If he wants to maximize the profit for his business the meatball prices will exceed marginal cost; there are two ways to make it possible for the product. the first option is to reduce the marginal cost through the reduction on the cost prices, it will reduce the total marginal cost and give a higher profit.
The second option involves rising the prices, in this case, as Angelo has the market's control he can rise the prices,as a result, the marginal cost will be the same but the meatball's prices will be higher increasing the profit.
Answer:
economic loss of $20,000 per year
Explanation:
The account teller earned an accounting profit = $40,000 per year, but actually has an economic loss.
economic profit / loss = accounting profit - opportunity costs
Opportunity costs are the costs or benefits lost from choosing one activity or investment over another alternative.
The teller's opportunity costs = $50,000 salary + ($100,000 x 10%) savings account = $60,000
economic profit/loss = $40,000 - $60,000 = -$20,000
Answer:
A firm offer.
Explanation:
A firm offer is an irrevocable, written and signed offer that will remain open for a specific period of time or occurrence of a certain event, during which the specified goods or services can not be revoked.
It is normally considered to be open for 30 days after its presentation, if no date is specified.
<span>The scenario in which Tesla, who crafts imitation dream catchers in her spare time and because her father constantly encourages her to sell them on ebay. she finally agrees to sell them, but she notices that while she still enjoys making the dream catchers, she no longer does it for fun—she does it to make money this is an example of the over justification effect.
</span> The over justification effect<span> occurs when </span>some extrinsic reward (money for example) leads to a reduction in a person's intrinsic motivation.
This question is incomplete. The complete question should be:
Suppose the market for cars is unregulated. That is, car prices are free to adjust based on the forces of supply and demand.
If a shortage exists in the car market, then the current price must be ____ than the equilibrium price. For the market to reach equilibrium, you would expect ______.
Answer:
If a shortage exists in the car market, then the current price must be <u>lower</u> than the equilibrium price. For the market to reach equilibrium, you would expect <u>buyers to pay higher prices.</u>
Explanation:
When demand is equal to supply in a market, the the market is said to be at equilibrium.
In a market for cars, the equilibrium price is the price at which cars are sold when demand for cars equals the supply of cars into the market.
If the price of cars in the market drops lower than the equilibrium price, <u>then there will be an increase in demand for cars. Without a corresponding increase in supply of cars, the market will experience a shortage of cars.</u>
For the market to reach equilibrium, prices will have to rise and car buyers will have to pay higher prices.
