Joey operates a lemonade stand. His cost of the lemons, sugar, and water per 8 oz. glass is $0.15. Joey's fixed cost is $180. Joey sells five glasses of lemonade per hour that he operates. a. When he was eight years old, Joey had a near zero opportunity cost of time. As a result, his total cost function C(g) was given by V. His marginal cost function (MC(@) was V. His shutdown price was $ b. Joey has aged and is now 17. If he were not selling lemonade, he would be working six hours per day at $6 per hour, and then would be spending the remainder of the day with his friends. Joey's total value of the time he spends with his friends, t, is 6t + t. Joey's total cost function C(q) is now given by: OA. 180+0.15g+6x! OB. if q5 30 180 +1.35g, if q s 30 (q -30) (q-30) 216-1.05g+0.04g, ifq > 30 180+36+0.15g+6x- if q > 30 OC. Both A and B; they are equivalent. O D. Neither A or B. Joey's marginal cost function, MC(g) is now OA (1.35, if qs30 O B. (1.35g, if q < 30 (-1.05+0.08g, if q > 30 (-1.05+0.04g, if q > 30 OC. Both A and B; they are equivalent. O D. Neither A or B. Joey's marginal cost function, MC(q) is now O A. (1.35, if q < 30 О В. (1.354. if q s30 (-1.05+0.08g, if q > 30 1-1.05+0.04g. ifq > 30 Joey's shutdown price is now $ c. Clearly, the shutdown prices of 8-year-old and 17-year-old Joey are
Joey operates a lemonade stand. His cost of the lemons, sugar, and water per 8 oz. glass is $0.15. Joey's fixed cost is $180. Joey sells five glasses of lemonade per hour that he operates. a. When he was eight years old, Joey had a near zero opportunity cost of time. As a result, his total cost function C(g) was given by V. His marginal cost function (MC(@) was V. His shutdown price was $ b. Joey has aged and is now 17. If he were not selling lemonade, he would be working six hours per day at $6 per hour, and then would be spending the remainder of the day with his friends. Joey's total value of the time he spends with his friends, t, is 6t + t. Joey's total cost function C(q) is now given by: OA. 180+0.15g+6x! OB. if q5 30 180 +1.35g, if q s 30 (q -30) (q-30) 216-1.05g+0.04g, ifq > 30 180+36+0.15g+6x- if q > 30 OC. Both A and B; they are equivalent. O D. Neither A or B. Joey's marginal cost function, MC(g) is now OA (1.35, if qs30 O B. (1.35g, if q < 30 (-1.05+0.08g, if q > 30 (-1.05+0.04g, if q > 30 OC. Both A and B; they are equivalent. O D. Neither A or B. Joey's marginal cost function, MC(q) is now O A. (1.35, if q < 30 О В. (1.354. if q s30 (-1.05+0.08g, if q > 30 1-1.05+0.04g. ifq > 30 Joey's shutdown price is now $ c. Clearly, the shutdown prices of 8-year-old and 17-year-old Joey are
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Joey operates a lemonade stand. His cost of the lemons, sugar, and water per 8 oz. glass is $0.15. Joey's fixed cost is $180. Joey sells five glasses of lemonade per hour that he operates.
a. When he was eight years old, Joey had a near zero opportunity cost of time. As a result, his total cost function C(g) was given by
V. His marginal cost function (MC(g) was
His shutdown price was $
b. Joey has aged and is now 17. If he were not selling lemonade, he would be working six hours per day at $6 per hour; and then would be spending the remainder of the day with his friends. Joey's total value of the time he spends
with his friends, t, is 6t + t?. Joey's total cost function C(g) is now given by:
St+
O B.
180 +1.35g, if q s 30
OA.
180+0.15g+ 6x ,if q s 30
5
(g-30), (4-30
5
216 – 1.05g+0.04g', if q > 30
180+36+0.15q +6x-
if q > 30
OC. Both A and B; they are equivalent.
O D. Neither A or B.
Joey's marginal cost function, MC(g) is now
O A. (1.35, if q < 30
ОВ. (1.354. if q $ 30
(-1.05+0.08g, if q > 30
(-1.05+0.04g, if q > 30
OC. Both A and B; they are equivalent.
O D. Neither A or B.
Joey's marginal cost function, MC(q) is now
O A. (1.35, if q<30
O B. (1.35g, if q <30
|-1.05+0.08g, if q > 30
|-1.05+0.04g, if q > 30
Joey's shutdown price is now $
c. Clearly, the shutdown prices of 8-year-old and 17-year-old Joey are
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