Answer:
C. eat more pizza and spend less on pizza than he did before the price decrease.
Explanation:
The inelastic means that when the elasticity is less than one
Since the demand for pizza is inelastic and the price of pizza decreases that would result in an increase in the quantity demanded of pizza.
Though the price of pizza decreases, the Pablo spend less than before as the price and the quantity demanded has an inverse relationship.
Answer:
Explanation:
The cost equation is shown below:
Y = Constant + Volume × Independent variable
where,
Y = operating costs
And, The other items values would remain the same
Now put these values to the above formula
So, the value would equal to
= $170 + 2,300 units × $260
= $170 + $598,000
= $598,170
Hence, the cost equation is displayed above and the operating costs are $598,170
Answer:
Diminishing returns
Explanation:
A firm producing widgets (term for a generic good) has two factors of production.
The factory and labour. The capacity of the factory is fixed, and the marginal cost
(MC) of labour is the same (i.e. each new worker will cost the same).
There are two stages to how MC is affected.
1. Increasing returns (MC goes down)
As output begins to increase, the large manufacturing processes/equipment still not fully utilised means and the additional labour can be productive as they can always use the equipment to its full potential due to which the MC is relatively low.
2. Constant returns (MC goes sideward)
At this point, labour is producing its optimal output per unit. The marginal cost is therefore at its lowest.
3. Diminishing returns (MC goes up)
The more labour that is employed, the less marginal output it is able to produce. This could be a result of too many people to efficiently operate/ rotate use of machinery. The cost increases more and more to generate an extra unit of output, because of labour exhibiting diminishing returns in the short run.
In this question, the 10th worker has added 22 units which is 3 units less than the number of units added by the 9th worker, thus the company is producing less marginal output for each worker. so based on the above discussion it can be concluded that the company has Diminishing returns.
<span> The correct answer
follows; the cross price elasticity of demand for iceberg lettuce with respect
to romain lettuce is positive and the cross price elasticity of demand for
iceberg lettuce with respect to tomatoes is negative. Cross price elasticity is
being defined as a demand of which measures the quantity demand responsiveness
in regards of a good in which changes for another good. </span>
