The manager of the donut shop tells you that hesells donuts for $1 each, and that if he were to makeadditional donuts, based on his current level ofoutput, it would cost him $0.80 per donut. Do yourecommend that the manager increase or decreasethe number of donuts he makes?
The manager of the donut shop tells you that hesells donuts for $1 each, and that if he were to makeadditional donuts, based on his current level ofoutput, it would cost him $0.80 per donut. Do yourecommend that the manager increase or decreasethe number of donuts he makes?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
The manager of the donut shop tells you that he
sells donuts for $1 each, and that if he were to make
additional donuts, based on his current level of
output, it would cost him $0.80 per donut. Do you
recommend that the manager increase or decrease
the number of donuts he makes?
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