Case Study: Starting a Business

Question 1

Using the table, calculate the marginal cost of each quantity of shoe inserts. The first pair: $ The third pair: $ The fifth pair: $

Revolt · Accepted Answer

Part 1: 7; Part 2: 1; Part 3: 2

Question 2

This graph shows the marginal cost of producing each additional pair of running shoe inserts.Based on the graph, which pair of shoes has a marginal cost of $3.00?

Revolt · Accepted Answer

Pair 6

Question 3

Using this table, calculate the profit at each level of running shoe inserts production. Pair 1: $ Pair 2: $ Pair 3: $ Pair 4: $ Pair 5: $

Revolt · Accepted Answer

Part 1: 23; Part 2: 51; Part 3: 80; Part 4: 109; Part 5: 137

Question 4

This graph shows the marginal costs of each pair of running shoe inserts produced. Select the correct answer from the options available.At what level of production are you making the greatest profit?

Revolt · Accepted Answer

Pair 4

Question 5

In this lesson, you started by reviewing customer demand before choosing a business.What microeconomic factors point to the fact that your business should be successful? Be sure to provide evidence for your claim.

Revolt · Accepted Answer

The business should be successful because surveys and market research show that consumers are able and willing to buy custom outdoor shoe equipment. The area's high standard of living indicates that customers can afford the product, while the lack of demand for new coffee shops and their greater capital and competition risks make the shoe business a better opportunity.

Case Study: Starting a Business Answers

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