question1) In this Exhibit the average variable cost of producing 20 units is a.
ID: 1101762 • Letter: Q
Question
question1)
In this Exhibit
the average variable cost of
producing 20 units is
a. $20
b. $25
c. $22
d. $250
e. $350
________________________
Output Rent Cost of labor matrials 0 $200 $0 $0 10 200 100 100 20 200 200 200 30 200 250 300 40 200 350 400 50 200 500 500 On a normal day, Emily Mapai's demand curve for a cup of hot chocolate is initially shown as D in Exhibit 6-15. On a day when the high temperature does not get above zero degrees, her demand curve increases to D'. At a price P for a cup of hot chocolate. Emily's consumer surplus on a freezing day cannot be determined without calculation an exact marginal valuation increases a great deal over her consumer surplus on a normal day will vary depending on whether hot chocolate is a normal or an inferior good increases only if her demand curve is unit-elastic decrease a great deal over her consumer surplus on a normal dayExplanation / Answer
a) TVC / q = 400 / 20 = 20
b) option B : increase a great deal over her consumer surplus on a normal day ;
consumer suprplus is area under demand curve between the points {the max price consumer is ready to pay and actual price consumer is paying }
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