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Understanding Supply Curves.edited

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Macro Economics
School
Orange Coast College
Type
Homework
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Understanding Supply Curves
Student’s Name
Institutions’ Name
Instructor’s Name
Due date

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Q3. Edith is the owner and manager of a small coffee shop that employs three workers who
use one coffee machine to make and serve coffee to paying customers. The business has
begun to pick up; lines are getting longer every day in her shop. On a busy morning, she
sees her employees scrambling to take orders, get cups, fill coffee from the coffee machine,
add cream and sugar, and serve customers in a timely manner. She figures if she hires
three more employees, she'll be able to sell twice as much coffee. Do you think she's likely
to be right? Why or why not?
She is right. She will be able to sell more cups of coffee daily because the number
of workers will meet the daily demand and more demandincreasing the number of
employees by three increases the quantity supplied from Quantity 1 to Quantity 2.
Q5. Miker, a manufacture of generic medications, is deciding how much to charge retailers
for their generic acetaminophen. The marginal cost for each bottle is provided in the
accompanying table. If the price is $7.75, how many thousand bottles would Miker produce
each day? What about the cost is $9 per bottle? Use the Rationale Rule for Sellers in
Effects of hiring 3 more workers on number of coffee sold
Coffee supply 1
Price of Coffee ($) Coffee Supply 2
Price 2
Qnty1 Qnty 2 Coffee (Cups sold per day)

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1 Understanding Supply Curves Student’s Name Institutions’ Name Instructor’s Name Due date 2 Q3. Edith is the owner and manager of a small coffee shop that employs three workers who use one coffee machine to make and serve coffee to paying customers. The business has begun to pick up; lines are getting longer every day in her shop. On a busy morning, she sees her employees scrambling to take orders, get cups, fill coffee from the coffee machine, add cream and sugar, and serve customers in a timely manner. She figures if she hires three more employees, she'll be able to sell twice as much coffee. Do you think she's likely to be right? Why or why not? She is right. She will be able to sell more cups of coffee daily because the number of workers will meet the daily demand and more demand—increasing the number of employees by three increases the quantity supplied from Quantity 1 to Quantity 2. Price of Coffee ($) Effects of hiring 3 more workers on number of coffee sold Coffee supply 1 Coffee Supply 2 Price 2 Qnty1 Qnty 2 Coffee (Cups sold per day) Q5. Miker, a manufacture of generic medications, is deciding how much to charge retailers for their generic acetaminophen. The marginal cost for each bottle is provided in the accompanying table. If the price is $7.75, how many thousand bottles would Miker produce each day? What about the cost is $9 per bottle? Use the Rationale Rule for Sellers in 3 competitive markets to help explain why the values are different. ...
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Anonymous
Very useful material for studying!

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