What is the average cost per unit for producing 3 units?
a. 200.
b. 260.
c. 70.
d. 110.
QUESTION 2Cover Charges Hank's Honkytonk is a local bar and nightspot. On weekends, it requires a 5 cover charge to defray the costs of the live musical acts Hank brings in. This has worked wonderfully, as it generates capacity crowds and a long line of people waiting to enter. However, after the cost of the acts, he still loses money on the weekends. What is his marginal revenue and marginal cost of a patron on weekends and how should he attempt to fix his unprofitability problem?
QUESTION 3What are the total profits if four units are produced?
a. 40.
b. 70.
c. -30.
d. 20.
QUESTION 4Wine Merger In October, 2014, Vintners Global Resource's (VGR) agreed to purchase M.A. Silva. VGR is a leading manufacturer of glass bottles and packaging for wines and M.A. Silva is a manufacturer of premium natural corks. What is the expected effect of this merger on price-cost margins?
QUESTION 5How many units should the profit maximizing firm produce?
a. 1
b. 2
c. 3
d. 4
QUESTION 6Beverage Merger Cott Corp markets a portfolio of beverages, bottled waters, beverage, and coffee delivery systems for homes and offices. In November, 2014, it has agreed to merge with DS Services of America, a water and coffee direct-to-consumer services provider. What is the expected effect of this merger on price-cost margins?
QUESTION 7What is the marginal cost of producing the third unit?
a. 60
b. 70
c. 90
d. 110
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