A bookstore is selling books for $9.99 each or three for $25. If Evi buys 2 books, what is the marginal cost of the 2nd book? OA. $25.00 OB. $9.99 OC. $5.02 OD. $8.33 OE. $19.98 If Evi buys 3 books, what is the marginal cost of the 3rd book? OA. $25.00 OB. $8.33 OC. $9.99 O D. $19.98 OE. $5.02

A bookstore is selling books for $9.99 each or three for $25. If Evi buys 2 books, what is the marginal cost of the 2nd book? OA. $25.00 OB. $9.99 OC. $5.02 OD. $8.33 OE. $19.98 If Evi buys 3 books, what is the marginal cost of the 3rd book? OA. $25.00 OB. $8.33 OC. $9.99 O D. $19.98 OE. $5.02

Microeconomics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506893

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter7: Consumer Choice And Elasticity

Section: Chapter Questions

Problem 2CQ

See similar textbooks

Related questions

Q: The marginal operating cost of each unit of quantity is $5 (since marginal cost is a constant, so is…

A: The price charged for adults and children are given below.…

Q: 23.5 Monetary Policy at the Zero Lower Bound 1) When the policy rate hits its lower bound and…

A: “Since you have posted multiple questions, we will provide the solution only to the first question…

Q: Question 2: Assume that good 2 is an inferior good after consumers have income of at least $1000 and…

A: The Engle curve shows the relationship between the quantity demanded of a good and consumer income,…

Q: ASKING FIRST TWO: a. State total profit equation and marginal profit for trucks: b. Determine output…

A: (a) Explain the overall profit calculation for trucks:Profit (π) is determined as the difference…

Q: The local currency in Peru is the Peruvian Nuevo Sol (PNS). In 2020, the official exchange rate…

A: PPP exchange rate is the value of the currency in the domestic market that is converted into the…

Q: A monopoly has the demand schedule p = 210 − 0.2q and the marginal cost schedule MC = 20 + 0.8q…

A: Business economics entails making decisions and allocating resources in complex market settings. It…

Q: The table shows some of the items in a country's National Income and Product Accounts in 2017. Use…

A: The sum of a country's final goods and services in a specific period of time is known as gross…

Q: A firm should continue to hire a resource as long as the resource's marginal revenue product exceed…

A: This question addresses the decision-making process for a firm regarding the hiring of resources. It…

Q: Joey "Jaws" Chesnut really likes eating Krystal burgers. The following table shows Joey's total cost…

A: The total cost represents the cumulative cost of producing each quantityTotal benefit represents the…

Q: 4. The ratio between price and marginal cost p/MC is largest when demand is very elastic at the…

A: The objective of the question is to determine whether the statement is true or false: 'The ratio…

Q: The demand for telephones is unit elastic. relatively elastic. relatively inelastic.

A: Elasticity refers to the responsiveness or sensitivity of one variable to changes in another…

Q: rate of employment

A: Unemployment refers back to the nation of being without an activity or painting, regardless of being…

Q: B) both B and C both A and C Figure A D) both A and B E) only D X Figure B Figure C 26) In the…

A: When an increase in the independent variables leads to an increase in the dependent variable, or…

Q: If the banking system has a reserves ratio of 10% and the Fed purchases $528 worth of government…

A: The percentage of reservable liabilities that commercial banks are required to retain rather than…

Q: A. Nominal GDP in 2002 B. Nominal GDP in 2005 C. Nominal GDP in 2010 D. Nominal GDP Growth 2002-2005…

A: Nominal GDP calculationNominal GDP is computed by multiplying the price and quantity produced for…

Q: 2. David gets $3 per week as an allowance to spend any way he pleases. Since he likes only peanut…

A: Part a: Original Purchase with $3 Allowance David's weekly allowance: $3Cost per ounce of peanut…

Q: Suppose the demand for pizza in a small isolated town is p = 10 - Q. There are only two firms, A and…

A: The Cournot model is a model of oligopoly. Here two firms compete on the quantity of output they…

Q: Does a mixed economy mean an economy where there is? A. Existence of capitalism B. Privatization,…

A: An economic system is a system by which government manage and distribute resources to a…

Q: A firm has a linear demand function for it's product.When the price of the product is sh.20,the…

A: The price of product is given as 20 and the quantity demanded at that price is 40 units.The price…

Q: A health club offers two different plans for its visitors. Under plan A, no membership is required…

A: Plan A:In this plan, no member is required. Price of each visit is $10. Pv=$10.The price of…

Q: 4. In order to reduce farm output, raise farm prices, and thus raise farm incomes (revenues), the…

A: To explain why farmers may benefit from poor harvests, even without taking into account revenue from…

Q: Assume you work at Taco Cabaña part time during college. Your federal income taxes are $1,900 this…

A: Present worth, also known as present value, is a financial concept that refers to the current value…

Q: Two firms who make identical products engage in Cournot competition. The inverse market demand curve…

A: Market inverse demand equatiion: P(Q)=60−10Q.Q is quantity and there are two firms in this market.…

Q: demonetization

A: Demonetization refers back to the technique of discontinuing the use of a specific forex unit,…

Q: Marginal revenue is calculated: by finding the additional revenue earned from selling an extra unit…

A: Marginal revenue refers to an increase in revenue from selling an additional unit of goods and…

Q: Is the price of a concert ticket micro or macro

A: Microeconomics deals with the behavior of individual economic agents, such as consumers, firms, and…

Q: For a monopolist, it is typically a great idea to implement third-degree price discrimination (the…

A: The objective of the question is to determine whether it is beneficial for a monopolist to implement…

Q: find equation for Marginal Revenue where MR is a function of output (Q_x) e. IF MC=4, find output…

A: In the diagram, we have been given the demand curve. This demand curve passes through points (0, 16)…

Q: Hourly Wage (dollars) $8.00 8.50 9.00 9.50 10.00 10.50 Quantity of Quantity of Labor Labor Supplied…

A: At equilibrium, both the quantity supplied and quantity demand will be equal. A surplus arises when…

Q: 9. Changes in the demand for money and and monetary policy Suppose interest rates increased. Adjust…

A: Among the options provided, the factors that may be responsible for a shift in the money demand…

Q: Figure 4-1 shows Kendra's demand curve for ice cream cones. Refer to Figure 4-1. If the market price…

A: An economic measure of the advantages that consumers receive from market competition is called…

Q: Perfect Population Projections Incorporated (PPP) has entered into a contract with the city of…

A: The expected or forecasted population for a certain future year is referred to as the projected…

Q: What problems result from government attempts to stabilize the exchange rate at a level that is not…

A: The exchange rate is the rate at which one country's currency is exchanged for another country's…

Q: The national accounts of Parchment Paradise are kept on (you guessed it) parchment. A fire in the…

A: Gross Domestic Product refers to the total market value of all final items and services produced…

Q: If 20000 is invested now, and 40000 four years from now(all at 5%), what will be the total amount in…

A: The concept of FV can be explained as the estimated monetary worth of an investment or flow of cash…

Q: According to the figure, how many workers would be hired if the prevailing wage were Instructions:…

A: For a salary of $14 per hour, we identify the point on the MRP line that corresponds to $14 on the…

Q: Consider the following cost function: c(w₁, w₁, y) = (₁ + w₂J4y² (a) Find the marginal cost…

A: We have the cost function:(a) For the Marginal Cost (MC), we differentiate the cost function with…

Q: Question 25 Economists say that a market where goods are not consumed by those valuing the goods…

A: The issue here revolves around understanding the idea of a market where commodities are not used by…

Q: The below figure shows the investment rates (or saving rates) for Albania, Botswana, and Turkey from…

A: Nations witness economic expansion as their gross domestic product (GDP) rises over time, indicating…

Q: The biggest employer in the city is closing. Predict what will happen to the city's real estate…

A: The closure of the biggest employer in the city represents a significant economic shock. It not only…

Q: Zeus Computer Chips, Incorporated used to have major contracts to produce the Centrino-type chips.…

A: Forecasting is the act of predicting the future trends of a business situation based on present or…

Q: Economic agents (for example, consumers or firms) often do things that at first glance seem to be…

A: The deviations from Nash predictions, where economic agents act in ways seemingly inconsistent with…

Q: Suppose the price of wheat in Canada rises. As a result, the equilibrium price of wheat in the…

A: Market demand for a commodity can shift as a result of a change in consumer income, their tastes and…

Q: Consider a state in which automobile drivers are divided equally into two types of drivers: careful…

A: This concept of insurance can be explained as a financial arrangement in which a person or entity…

Q: Suppose that a firm is an imperfect competitor in the product market and a perfect competitor in the…

A: This can be described as a form of market in which no single producer or consumer has the power to…

Q: Suppose a consumer has an income of $200, and the price of good Y is equal to $2. The price of good…

A: The Optimum level of consumption is when a consumer can spend all their budget or income at a given…

Q: (Based on Chapter 2, Problem 1 of Benjamin et al., 2031) Amit has $2000 of annual non-labour income.…

A: The objective of the question is to understand Amit's labour supply decision and how it changes with…

Q: Find the trend of a country using the provided CPI based inflation rates Year Inflation rate (%)…

A: CPI (Consumer Price Index) measures changes in the average price level of goods and services…

Q: Question 10: A car manufacturing plant finds that adding more assembly line workers initially leads…

A: In this question, the behavior of the car manufacturing plant in response to adding assembly line…

Q: (Figure: Supply Curves) The figure shows four different supply curves for four products. Which one…

A: A supply curve shows how the quantity that manufacturers are willing to offer in the market and the…

Question

A bookstore is selling books for $9.99 each or three for $25.
If Evi buys 2 books, what is the marginal cost of the 2nd book?
OA. $25.00
OB. $9.99
OC. $5.02
OD. $8.33
OE. $19.98
If Evi buys 3 books, what is the marginal cost of the 3rd book?
OA. $25.00
OB. $8.33
OC. $9.99
OD. $19.98
OE. $5.02

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Define Marginal cost

VIEW

Step 2: Calculate Marginal cost when 2 books are bought

VIEW

Step 3: Calculate MC when 3 books are bought

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 4 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Sven runs a daycare for some of the neighborhood children, where he earns $300/day inrevenue. He runs the daycare out of his home, for which the mortgage costs $3,000 per month($100 per day). Each day, Sven spends $50 on food, diapers, and other supplies. He also hassome toys and playground equipment that originally cost $500, but which he wouldn’t getany money for reselling today. Sven looks after all the children himself, so he doesn’t pay anymoney in labor costs. If he weren’t busy with the daycare, he could earn $120 per day as aprivate nanny. What is Sven’s daily economic profit from the daycare? (Select one from below) (a) $300: Economic profit is equal to revenue.(b) $180: That is his revenue minus opportunity cost.(c) $150: That is his revenue minus input cost.(d) $130: That is his revenue minus variable cost.(e) $50: That is his revenue minus accounting cost.(f) $30: That is his revenue minus economic cost.(g) $0: In the long run, all firms must make zero profits.(h) –$200:…
1. Explain the decisions taken for an individual product.
Mililani business owner Selina runs a small hair salon and does laundry on a regular basis to clean uniforms, hair cloths, client robes, and other washables. Selina is running low on detergent and saw the same-sized boxes of Arm & Hammer laundry detergent on sale at two different stores. Sale price of detergent Regular price of detergent Store Store 1 Store 2 $9.98, limit 4, with additional boxes at regular price Buy two get one free, limit 1 free box, with additional boxes at regular price If Selina only has time to go to one of these stores and needs 3 boxes, whose advice is correct? Select the cost of 3 boxes of Arm & Hammer Laundry detergent at Select $15.99 Selina's friend Kimo said that Store 2 would be cheaper and noted that Store 1's regular price is cheaper than Store 2's regular price. Selina's other friend Lani said that it would be cheaper to go to Store 1, pointing out that Store 2's sale price is still higher than Store 1. Would the situation change if Selina needs 5…
Diana's Delicious Donuts sells Fresh Hot Glazed Donuts, and Coffee and is contemplating buying a food truck to make and sell its products in large events like county fairs, outdoor concerts, and other similar events. The truck will cost $200,000. Sales Information At a typical event Diana's expects to sell 4,000 Donuts at $2 per piece. Coffee sells at $ 1 and based past on experience they know they sell half as many coffees as they sell donuts at an event. Diana's plans to hit 10 events per year. Sales of donuts, and hence coffee, are expected to go up 7% annually. Item prices must remain same to attract customers in an extremely competitive market. Cost information Today It costs the company: 2. 3. 4. O 50 cents to produce one donut. 30 cents to produce one cup of coffee. O Fuel costs $100 per fair visit. All three costs are expected to increase 5% annually (i.e., 5% higher compared to previous year's number) There are no labor costs as Diana and her family will do all the work. Diana…
8. A publisher plans to sell 200,000 copies of textbook in a year. If it costs $3750 to set up a printing, $3 to print a book and $600 to store 1000 books for a year, what size printing runs will minimize the publisher's cost?
1.14. If Charles Lackey's utility costs remain constant at $500 per month, labor at $8 per hour, and cost of ingredients at $0.35 per loaf, but Charles does not pur- chase the blender suggested in Problem 1.14, what will the productiv- ity of the bakery be? What will be the percent increase or decrease?
Buffy is thinking about opening an amulet store. Sheestimates that it would cost $350,000 per year to rentthe location and buy the merchandise. In addition,she would have to quit her $80,000 per year job as avampire hunter. Buffy thinks she can sell $400,000 worth of amulets in a year. What would her accountant consider the store’s profit? 2. Should Buffy open the store? Explain.
Give explanation of correct options and explanation of incorrect options don't upload any graph.
explain how opportinity cost affects consumer behacvior
Mike has spent $500 purchasing and repairing an old fishing boat, which he expects to sell for $800. He discovers that he needs an additional repair, which will cost $400. He can sell the boat as it is now for $300. What should he do? Select one: O a. He should take the $300. O b. He should never sell something for less than its cost. O c. He should complete the repairs and sell the boat. Od. It doesn't matter which action he takes; the outcome is the same either way. Qui G 10
7. A tire dealer buys 4000 tires a year from a local distributor. Each tire costs $75, the ordering fee is $30 per shipment and the storage cost is $24 per tire per year. How many tires should be ordered in each shipment in order to minimize the total cost?
at a subscription price of $12.99 per month the peloton app has 874,000 digital subscribers . pelton's accountant is preparing the company's monthly financial statement. what is peloton's monthly total revenue? A.11,353,260 b.873,987 c.874,013 d.67,283