A business owner must decide to build sofas, chairs, or bed mattresses with the materials the company owns. The workers at the factory can build 100 sofas, 150 bed mattresses, or 200 chairs. The cost of manufacturing the sofas is more than chairs but less than the cost of manufacturing the mattresses. The profit margin on the mattresses is potentially highest. However, the mattresses require the most time to make. To make the chairs cost the least but uses the most resources. Taking all of these factors into consideration, the owner has to decide which type of furniture to manufacture.   Based on the scenario, the business owner needs to mainly determine which of these? The scarcity of resources for each option The value of manufacturing each option The sales taxes for manufacturing each option The maximum utility from each option

Suppose that Maria is starting a food ordering and delivery company. Customers order meals online. Employees prepare the meals and deliver them to customers. Maintenance of the online platform for ordering meals costs the company $5/day. The company also rents spave where orders are prepared. Rent costs $50/day. To make the deliveries, the business also rents two delivery cars the cost $10/day. The costs of ingredients for preparing different numbers of meals are probided in the table below. Maria also has to hire between 0-10 workers to buy ingredients, prepare meals, and deliver the orders. She pays them $120/day. The first two columns of the table below shows how many meals different number of workers can prepare and deliver.  Fill out the table

Optimization Problem #5

A farmer’s fields are right next to the train tracks, where sparks from the trains set the field on fire. The railroad profit from running zero, one, two or three trains is shown below. The columns indicate the number of trains running. Total railroad profits are the total profits to the railroad from running the specified number of trains. Total lost farmer profits are total profits the farmer loses from a specified number of trains running.                                                                                                           Trains                                                              0                 1                  2                  3 Total Railroad Profit.                      $200           $300           $350           $410Total Lost Profit for Farmer             $0             $100            $125            $300 1) If a court grants the railroad the property right throw sparks, and transaction costs are $1400 (split evenly by the…

You serve 3,000 private-pay patients and 1,000 health maintenance organization (HMO) members. Your fixed costs are $50,000 and your incremental cost is $50. You currently charge private-pay patients $75 and HMO members $60. This line of business is profitable. Profits would increase if you stopped serving HMO members. You should stop serving HMO members if fixed costs increased to $60,000. All of the above

You own a company that produces helmets. You are currently selling 100 helmets per week. Your average total cost of producing these helmets is $100. Recall ATC=TC/Q. A customer comes to your store and says he needs a helmet and will pay you $95 for it. Thus you need to produce the 101st helmet if you make the sale. Your average total cost if you produce 101 helmets is $99.95. Do you sell the helmet to the customer for $95?

Chloe is a chef who runs a niche food delivery business in a competitive industry. Chloe specializes in making monster calzones. Chloe sells 20 monster calzones per month. Her monthly total revenue is $5,000. The marginal cost of making a monster calzone is $300. In order to maximize profits, Chloe should A) make more than 20 calzones per month. B) make fewer than 20 calzones per month. C) continue to make 20 calzones per month. D) We do not have enough information with which to answer the question.

Hercules Films is deciding on the price of the video release of its film Son of Frankenstein. Its marketing people estimate that at a price of p dollars, it can sell a total of q = 280,000 - 20,00 copies. What price will bring in the greatest revenue? = $

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You are the County Commissioner of Hazard County. Recently a severe wave of storms swept across Hazard County, spawning several tornadoes and creating a wide path of mayhem. The citizens of Hazard County are demanding that you do something to protect them. You decide to install some early warning tornado sirens. However, there is no money left in the county budget, so you ask each citizen to donate some money to build the system. Many citizens donate money to help build the warning system; however, Ms. Nancy, who is wealthy, decides she is not going to donate. The early warning sirens are an example of a and Ms. Nancy represents a Public goods are in rivalry and in excludability. What approach would be the least effective way to deal with free riders? OA. Appeal to their civic sense of responsibility. OB. Exclude citizens from benefiting from the good or service. OC. Threaten to expose the free riders to their neighbors. OD. Offer citizens a favor or a small gift if they agree not to…