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Lilit [14]
3 years ago
9

Last year, BruceCo sold 1000 coffee cups for $10 each. This year, the company is plannin on selling 1500 coffee cups. In order t

o cover the additional investment they will charge $10.50 for the first 500 cups, $10.25 for the second 500 cups and $10 for the last 500. Each cup costs $4.70 to produce. What is the marginal revenue for the 1125th cup?a. $10.25b. $10.50c. $10.00d. $1,250e. $5.30
Business
1 answer:
agasfer [191]3 years ago
5 0

Answer:

The answer is: E) $5.30

Explanation:

The first 500 cups are sold at $10.50 per cup.

Then cups 501 to 1,000 are sold at $10.25 per cup.

Cups 1,001 and beyond are sold at $10 per cup.

The cost of producing one cup of coffee is $4.70 regardless of how many cups are produced.

The 1,125th cup will be sold at $10 and cost $4.70, the marginal revenue is $5.30.

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Answer:

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For example if someone is supposed to paint a house but he has other engagements. He can delegate to another painter to perform the painting.

Delegation does not transfer contractual rights as the original person still collects payment for performance of the task.

Usually delegation can occur for tasks that do not require special skill and can be performed by anyone.

In the other scenarios special skill is required so delegation will not be usually allowed.

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