1. A restaurant manager owns deep fryer equipment. The manager has two options:
ID: 1126740 • Letter: 1
Question
1. A restaurant manager owns deep fryer equipment. The manager has two options: (1) Rent machine to another restaurant to ean $8,000 per month or (2) Pay $6,000 in licensing fees per month to cook "Mom's Special Chicken" in the fryer. What is the manager's opportunity cost of cooking "Mom's Special Chicken"? a) $10,000 b) $8,000 c) $6,000 d) $4,000 2. If marginal costs exceed marginal benefits, then for the next unit of production: a) the firm's total profit on all units produced will be negativeX b) the firm's average costs exceed average benefits c) the firm should not produce the additional unit d) the firm should produce the additional unit only if total benefits exceed total costs 3. You go to baseball games every week. Last week the price of a hot dog was $1 while the price of a hamburger $2. Like most consumers, you view these products as ubstitutes The cart sold 300 hot dogs and 200 hamburgers. This week the price of hot dogs has risen to $1.50. What will happen to the price and quantity of hamburgers this week? An increase in price and an increase in quantity sold 30 o a) b) An increase in price and a decrease in quantity sold c) A decrease in price and an increase in quantity sold d) A decrease in price and a decrease in quantity soldExplanation / Answer
1 the opportunity cost is 8000
2 the firm should not produce additional unit
3 an increase in price and an increase in quantity sold
4 D buy 4% less almond butter
Can answer only 4 parts according to chegg policy. Please send other parts as separate question
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