Ramona is an asparagus farmer and the world asparagus market is perfectly competitive.The market price is $23 a bundle. Ramona sells 800 bundles a week and her marginal cost is $25 a bundle.The market price falls to $20 a bundle, and Ramona cuts her output to 500 bundles a week.Ramona's average variable cost and marginal cost fall to S20 a bundle.Ramona isA. not maximizing profit because she has cut her asparagus productionO B. not maximizing profit because she is incurring an economic lossC. maximizing profit and she is incurring an economic lossO D. maximizing profit and she is making an economic profitE. not maximizing profit because marginal revenue does not equal marginal cost The table shows Jerry's total utility from bus ticketsand movies.Bus ticketsMoviesQuantityper weekTotalQuantityper weekThe price of a bus ticket is $2, the price of a movie is $10, and Jerry has $20 a week to spend.TotalutilityutilityCalculate Jerry's marginal utility from the third bus ticket and marginal utility per dollar when he buys 3 bus tickets. CalculateJerry's marginal utility from the third movie and marginal utility per dollar when he buys 3 movies11201250>>> Answer to 1 decimal place.222045033003600Jerry's marginal utility from the third bus ticket is1 units.43604700The marginal utility per dollar from bus tickets when Jerry buys 3 bus tickets is 1 units per dollar.Jerry's marginal utility from the third movie is 1 units.The marginal utility per dollar from movies when Jerry buys 3 movies is 1 units per dollar.

Ramona is an asparagus farmer and the world asparagus market is perfectly competitive. The market price is $23 a bundle. Ramona sells 800 bundles a week and her marginal cost is $25 a bundle. The market price falls to $20 a bundle, and Ramona cuts her output to 500 bundles a week. Ramona's average variable cost and marginal cost fall to $20 a bundle. Ramona is A. not maximizing profit because she has cut her asparagus production B. not maximizing profit because she is incurring an economic loss c. maximizing profit and she is incurring an economic loss D. maximizing profit and she is making an economic profit E. not maximizing profit because marginal revenue does not equal marginal cost

Ramona is an asparagus farmer and the world asparagus market is perfectly competitive. The market price is $23 a bundle. Ramona sells 800 bundles a week and her marginal cost is $25 a bundle. The market price falls to $20 a bundle, and Ramona cuts her output to 500 bundles a week. Ramona's average variable cost and marginal cost fall to $20 a bundle. Ramona is A. not maximizing profit because she has cut her asparagus production B. not maximizing profit because she is incurring an economic loss c. maximizing profit and she is incurring an economic loss D. maximizing profit and she is making an economic profit E. not maximizing profit because marginal revenue does not equal marginal cost

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter5: Investment Decisions: Look Ahead And Reason Back

Section: Chapter Questions

Problem 5.7IP

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