A doughnut shop manager receives a share ? of the shop’s revenue as payment. Let q* be the output level (doughnuts produced and sold) that maximize the shop’s profit and assume the manager has control over production and sales. Which of the following alternatives is correct? (a) The manager will choose an output level q > q* (b) The manager will choose an output level q < q* (c) The manager will choose an output level q = q* (d) The manager will choose an output level q = 0.5q* now assume the manager receives a share x of the shop’s profits as payment (not revenue). Which of the following alternatives is correct? (a) The manager will choose an output level q > q* (b) The manager will choose an output level q < q* (c) The manager will choose an output level q = q* (d) The manager will choose an output level q = 2q*
A doughnut shop manager receives a share ? of the shop’s revenue as payment. Let q* be the
output level (doughnuts produced and sold) that maximize the shop’s profit and assume the
manager has control over production and sales. Which of the following alternatives is correct?
(a) The manager will choose an output level q > q*
(b) The manager will choose an output level q < q*
(c) The manager will choose an output level q = q*
(d) The manager will choose an output level q = 0.5q*
now assume the manager receives a share x
of the shop’s profits as payment (not revenue). Which of the following alternatives is correct?
(a) The manager will choose an output level q > q*
(b) The manager will choose an output level q < q*
(c) The manager will choose an output level q = q*
(d) The manager will choose an output level q = 2q*
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