Rational choice of consumers" is said to exist when Select one: None of the options are correct All of the options are correct  People weigh the costs and benefits of each possibility in a reasonable manner In case of firms, rational assumption is to mean that firms operate to maximize profit People make decisions and choices in pursuit of his own self interest

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A: A purely competitive firm is a price taker. It must accept the price of its output as measured by…

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A: GIVEN   A grocery store has limited shelf space. Every produce line generates a yearly profit per…

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Q: The American Baker’s Association reports that annual sales of bakery goods last year rose 15…

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Q: Respond to the question with a concise and accurate answer, along with a clear explanation and…

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Q: True or False: The law of diminishing marginal utility explains why short run production costs…

A: Law of Diminishing Marginal Utility states that as a consumer consumes more and more of a good or…

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Q: Tomas is the general manager for a local automated car wash. The market he operates is perfectly…

A: Perfectly competitive market: It is a market structure where there exists a large number of buyers…

Q: Which of the costs discussed in the chapter is the most important when a firm is deciding how much…

A: The analysis of all costs is necessary for a firm. But analyzing marginal cost is most important.…

Q: Jack scalps lawns in the neighborhood for $36 per house. He does ten houses per day. He is incurring…

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A: The pure competitive market defines a market where a massive number of buyers and business companies…

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A: To resolve this inquiry, it's vital to initially understand what marginal cost (MC) and average…

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Q: G) At what positive level of Q is marginal profit maximized?  You found the profit function in (e)…

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Q: You are one of 5 identical firms (i. e., you all have the same costs) that sell widgets. Each day…

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Q: If Daniel sells 250 hamburgers at a price of $3.00, and his average cost of producing 250 hamburgers…

A: Profit is the difference between total revenue and total cost.

Q: A young Thomas Edison makes 20 light bulbs a week in his dorm room. The parts for each light bulb…

A: The selling price = 5.25 Costs per unit = 2.25 No. of units =20

Q: The curves show the marginal cost (MC), average variable cost (AVC), marginal revenue (MR), and…

A: The total cost incurred by a firm is the sum of fixed costs and variable costs. Fixed costs do not…

Q: Total Revenue $5,000 per Week $2,600 per Week $2,400 per Week Total Variable Cost Total Fixed Cost…

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A: The profit of a firm is the revenue generated from its business. It includes the explicit and…

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A: A profit-maximization can be understood as a process of determining the level of output, and price…

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A: Perfect Competition refers to the condition of the market of a good or service where all firms sell…

Q: Mindy's salon is a small business that acts as a price taker (MR=P). The prevailing market price for…

A: Total cost(TC) is the cost a firm incurs during the production process. It includes both fixed cost…

Q: Which of the following is true in the short run?   Question 15 options:   at least one factor of…

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A: Marginal cost refers to the additional cost of production incurred in the process of increasing…

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Q: Suppose you are the owner of a burger restaurant that has a cost of production given by C = 400 +…

A: The cost of production for the burger restaurant is given byC = 400 + 0.02q2where,q = number of…