Question

tanya is opening a pie making business. buying all of the suppies and equipment has been expensive. What letter on the graph represent where Tanya is in the pie making business?
A
B
C
D
@jim_thompson5910

Answer 1

Auto Bull's-Eye offers a 10-minute oil change and 30-minute brake check. There are two technicians who perform each of these services. Next week, the shop is offering a discounted oil change. How might this affect the production possibilities curve for next week?

The shop would decrease the brake-check price to eliminate scarcity.

The shop would increase worker pay to make up for the opportunity cost of not doing brake checks.

The shop would shift production to oil changes and away from brake checks.

The shop would shift production to brake checks and away from oil changes.

Answer 2

for the first one I put A

Answer 3

I would think it's point A because that's usually where the marginal cost (MC) curve starts for any business. The costs come down over some economy of scale and then they rise again. The smart thing to do is sell enough product when MC = MR

Answer 4

if you sell at a point where MC > MR, then you lose money per item sold

Answer 5

okay what about the second one

Answer 6

any ideas on that one?

Answer 7

c

Answer 8

why C

Answer 9

because they are focusing on one service

Answer 10

yes, they end up doing more oil changes which means they do less brake checks

Answer 11

Andy compares mattresses. A twin-sized NightSoft mattress at the large chain BuyRite costs $1,500. The BuyRite saleswoman tells Andy that the company's 24-hour customer service, free mattress cleaning, and 60-day return policies are the best in the business.

A similar twin-sized model, the DarkNights mattress, at the small store Joe's Bed and Linens, costs $1,495. The salesman at Joe's tells Andy that this store offers a 30-day money-back guarantee, plus free delivery.

Which of these is Andy experiencing?

Non-price competition in a monopolistically competitive market

Non-price competition in a purely competitive market

Price competition in a monopolistically competitive market

Price competition in a purely competitive market
@jim_thompson5910

Answer 12

i'm stuck between B and C

Answer 13

I think you would agree that $1,500 and $1,495 are very close dollar figures

a difference of $5 is very very small when compared to $1,500

Answer 14

so if you had both brands identical, except for the price, then it really wouldn't matter which one he picks

Answer 15

see what I mean?

Answer 16

yeah it c

Answer 17

you're saying it's choice C?

Answer 18

yes

Answer 19

@jim_thompson5910

Answer 20

how is there price competition when the prices are virtually the same?

Answer 21

$5 is nothing compared to $1,500

Answer 22

i don't get it so it not a Price competition

Answer 23

do you see how it's not a Price competition ?

Answer 24

if you had brand A offer it for $1500 and brand B offer it for $1200, then that would be price competition

the difference is big enough for people to buy more of brand B

Answer 25

oh okay

Answer 26

so which one is it

Answer 27

Non-price competition in a purely competitive market

Answer 28

you sure it's purely competitive? Does your book offer definitions of what it means to be purely competitive?