Homework Help: Micoeconomics

Posted by JIM on Friday, July 20, 2007 at 8:23pm.

Your roommate's long hours in the chem lab finally paid off- she discovered a secret formula that lets people do an hour's worth of studying in 5 minutes. So far, she's sold 200 doses and faces the following average total cost schedule
Quantity Average total cost
199 doses $199
200 $200
201 $201
If a new customer offers pay your roommate
$300 for one dose, should she make one more. Explain.

Your figures indicate that it costs your roommate $1 to make 1 dose. It seems to be a no-brainer for her to make one more dose for a sale of $300. If she needs to make 200 doses for $200, she still reaps a great profit by selling one dose for $300.

No one has answered this question yet.

Answer this Question

Related Questions

Economics - 1. Your roommate's long hours in chem lab finally paid off--she ...
S.A.T Math - I do not understand This: Employee x is paid $12.50 an hour for the...
algebra - Joan is paid 11/2 hours for every hour she works on Saturday and 2 ...
medical Coding - Can someone tell me if I coded this right. This 23-year-old ...
Introduction to College Planning - I have to survey several people about what ...
English - Can you please check these sentences and tell me which one are ...
?? - why do you times 8.6x1.5x8? where does the 8 come from? You said the ...
Math - Sonja is paid $42.50 per hour as a veterinarian. She is paid 1 1/2 times ...
algebra - Assume you work at a company where you are paid hourly. You are paid $...
grammar(possessive) - "A years worth of hard work has finally paid off.&...

For Further Reading

First Name:
School Subject:
Answer: