Multiple Choice
A donut shop sells fresh baked donuts from 5 A.m.until 3 p.m.every day.The shop does not sell day-old donuts, so all unsold donuts are thrown away at 3 p.m.each day.The cost of making and selling a dozen donuts is $1.50; there are no costs associated with throwing donuts away.If the manager has 10 dozen donuts left at 2:30 p.m.on a particular day, which of the following alternatives is most attractive?
A) Lower the price of the remaining donuts, even if the price falls below $1.50 per dozen.
B) Lower the price of the remaining donuts, but under no circumstances should the price fall below $1.50 per dozen.
C) Throw the donuts away and produce 10 fewer dozen donuts tomorrow.
D) Starting tomorrow, lower the price on all donuts so they will all be sold earlier in the day.
Correct Answer:
Verified
Correct Answer:
Verified
Q8: During the 1990s,the United Kingdom experienced low
Q15: When the government attempts to improve equity
Q17: Productivity is defined as the<br>A)amount of goods
Q18: Economists use the word equity to describe
Q22: Over the past century,the average income in
Q24: Tuition is the single-largest cost of attending
Q30: Benefits from trade would not include<br>A)the ability
Q32: Incomes of U.S.households in the 1970s and
Q47: Both The Wealth of Nations and the
Q123: Suppose your management professor has been offered