High transaction costs   Multiple Choice   make spot exchange an efficient way to obtain inputs.   may be the result of downward-sloping demand.   may be a result of buyer opportunism.   occur when specialized investment is not important.

Q: Betty runs a toy store. Each toy costs Betty $4 and sells for $10 (so the gross profit per unit sold…

A: Given,

Q: Ptarmigan Company produces two products. Product A has a contribution margin of $84.00 and requires…

A:

Q: A company estimates that it can sell 2,000 units each month of its product if it prices each unit at…

A: The demand function is the mathematical relationship between the quantity of a commodity demanded…

Q: Economic profit is an indication that consumers are willing to pay more for a good or service being…

A: Profits of a firm are calculated by subtracting its total cost from its total revenue. Economic…

Q: The second unit of a good gives less satisfaction to a consumer. This is clearly a case of…

A: The second unit of a good gives less satisfaction to a consumer. This is clearly a case of…

Q: When the price is between AVC and ATC (ATCAVC), then total revenue for the competitve firm

A: TR = P x Q TVC = AVC x Q TC = ATC x Q

Q: Assume the following demand curve: Q = 50,400 1,200(P). Variable costs are estimated to be $25.23.…

A: optimal quantity is the quantity where the marginal revenue is equal to marginal cost. Total revenue…

Q: Firms Profitabilty a) can be enhances by the development of better products. b) can be undercut by…

A: Profitability is a firms ability to generate profit from its activities.

Q: A firm supply curve is upsloping because:         the expansion of production necessitates the use…

A: A firm enters the market and supplies specific products or services to make a profit from selling…

Q: The Acmeville Metropolitan Bus Service currently charges $0.99 for an all-day ticket, and has an…

A: The current price of the all-day ticket is P1=0.99. At this price, the number of riders is…

Q: You have just been hired by a forestry company as a consultant. The company wishes to know whether…

A: Revenue(TR-total revenue) is the product of P(price) and Q(quantity sold). P and Q have a negative…

Q: Suppose you are hiring a contractor to remodel your kitchen. One contractor offers a fixed price for…

A: Cost is defined as the expenditure. It is expressed in terms of money value in the production…

Q: Shopify, a well known Canadian firm is currently maximizing profit. If that is the case, Shopify…

A: Given: Canadian firm is maximizing profit.

Q: Spot markets are an efficient way for the firm to purchase inputs if

A: Opportunism refers to the behavior of taking advantage of situations for personal gain, without…

Q: Bavarian Crystal Works designs and produces crystal wine decanters for export to international…

A: Given, Demand function: P=1,000−0.0025QP=1,000-0.0025Q Fixed cost = $1,000,000 Variable cost = $200…

Q: After graduating, you start work as a management consultant. You are paid $210 per hour. One morning…

A: 1. $40,500 is what the first dealer requests. Given that this is more than the $40,000 average price…

Q: he variable cost to make a certain product is $71 per unit. Research indicates that the lowest price…

A: Given, VC = $71 per unit Lowest price = $156

Q: can a manager earn profit by exploiting market inefficiencies? What are some common tactics

A: Its often tendancy for managers to exploit the market inefficiencies and earn profit.

Q: CRM Analytics Drag the proper CRM analytic to match its definition. Intelligent Virtual Agent…

A: Analytics used in CRM (customer relationship management) refers to all software that analyses…

Q: You own a business that operates in perfect competition, and the market price of the product is $15…

A: A.   In perfect competition, the equilibrium point will occur at (MR = MC = AR = P). When the market…

Q: As the assistant manager of a restaurant, how many servers will you need given the following…

A: To answer this question, we will first find the effective dinners per server and then using that…

Q: The demand for a product is more inelastic: the lower the average income of consumers. the poorer…

A: The problem is related to understanding the factors that influence the elasticity of demand for a…

Q: A search good is a product that: is difficult to locate, so it takes time to find it. can easily be…

A: A search good is a product or service which can easily be evaluated before purchase.

Q: What is meant by a product that is “Complementary” to another product? A) Another product that…

A: In microeconomics, some goods can be classified as substitute goods and complementary goods. This…

Q: Opportunity costs are an important consideration for managers when deciding whether to accept…

A: Cost refers to the sum of money a corporation spends on making or producing products or services.…

Q: Pure, or economic, profit is   the return required to retain entrepreneurial talent in that line…

A: A company's profits are determined by deducting its total cost from its total income. By deducting…