Reference no: EM131378484
Jared runs a personal training studio and earned $5,000 last month. His fixed costs are $4,000 and variable costs are $3,500. Should Jared shut down his business immediately?
a) Yes, because he is clearly losing money.
b) Yes, because $5,000 cannot cover his fixed costs.
c) No, because $5,000 covers his fixed costs.
d) No, because $5,000 covers his variable costs.
Dimitri has several apple trees in his yard, and apples are a perfectly competitive market with a price of $2 per pound. If Dimitri sells apples at the farmer’s market, what is his total revenue and marginal revenue when he sells the 100th pound of apples?
a) total revenue is $2; marginal revenue is $2
b) total revenue is $200; marginal revenue is $2
c) total revenue is $2; marginal revenue is $200
d) total revenue is $200; marginal revenue is $200
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: Jared runs a personal training studio and earned $5,000 last month. His fixed costs are $4,000 and variable costs are $3,500. Should Jared shut down his business immediately? Dimitri has several apple trees in his yard, and apples are a perfectly com..
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