Case Study: Starting a Business Answers

A survey of hobbies and purchases can help a producer

The chart shows a production possibilities schedule for Sabrina’s Soccer. Which statement correctly explains the chart?

Read the factors of production for two businesses: In Case manufactures cases for smart phones, while Wrap It Up is a gift-wrapping service. In Case• $1,500 a month for rented building• Will need two new employees• $2,000 for inventory expenses• $4,500 for equipment expenses Wrap It Up • $1,500 a month for a rented store• Will need five new employees• $1,500 for inventory expenses• $2,500 for equipment expensesWhich statement correctly compares the two businesses?

The chart shows the revenue from selling soccer nets for Sabrina’s Soccer. How much profit does the company make from producing and selling four soccer nets?

The graph shows the average household income for a community named Anytown. Anytown households that earn more than $75,000 tend to buy sports equipment, while households that earn less than $75,000 tend to buy TVs. Which new business would be most likely to succeed?

The chart shows a production possibilities schedule for Sabrina’s Soccer. Stan’s Sporting Goods is a competitor that can manufacture seven soccer balls out of a possible ten, if it makes one soccer net. Which statement correctly compares the two businesses?

Read the factors of production for two businesses: In Case manufactures cases for smart phones, while Wrap It Up is a gift-wrapping service. In Case• $1,500 a month for rented building• Will need two new employees• $2,000 for inventory expenses• $4,500 for equipment expenses Wrap It Up • $1,500 a month for a rented store• Will need five new employees• $1,500 for inventory expenses• $2,500 for equipment expensesWhich statement correctly compares the two businesses?

What is the difference between absolute advantage and comparative advantage?

The graph shows the marginal cost of producing soccer cleats for Sabrina’s Soccer. At which level of production does the company make the least profit?

The graph shows a production possibilities curve for Sabrina’s Soccer. At which point on the graph are resources not used efficiently?

The chart shows a production possibilities schedule for Sabrina’s Soccer. If Sabrina’s Soccer makes three nets, how many balls can the company produce?

The graph shows a production possibilities curve for Sabrina’s Soccer. At which two points will Sabrina’s Soccer produce the most equal amounts of soccer balls and soccer nets?

Read the results from a survey of consumers in Anytown. • Fourteen percent of participants desire a store that offers custom-made shoes.• Thirteen percent of participants plan to purchase a new phone in the next year.• Fifty-two percent of participants think an additional pizza place is needed.• Twenty-one percent of participants say they purchase bagels on a daily basis. Based on the survey data, what will occur if a new pizza place opens?

The chart shows a production possibilities schedule for Sabrina’s Soccer. Stan’s Sporting Goods is a competitor that can manufacture seven soccer balls out of a possible ten, if it makes one soccer net. Which statement correctly compares the two businesses?

Sabrina’s Soccer produces soccer balls and soccer nets, which are sold at sporting goods stores. Which factors directly affect the company’s profit? Check all that apply.a stocking up on soccer cleats and uniformsa rise in the number of soccer leaguesa decrease in the cost of raw materialsthe opening of two sporting goods storesthe push for physical activities in schools

The graph shows a production possibilities curve for Sabrina’s Soccer. At which two points will Sabrina’s Soccer produce the most equal amounts of soccer balls and soccer nets?

Profit equals the total amount of money made minus

How can producers make the most profit? Check all that apply.They can work to increase their marginal cost.They can work to decrease their marginal cost.They can raise prices to increase marginal revenue.They can lower prices to decrease marginal revenue.They can keep marginal costs below marginal revenues.They can keep marginal revenues below marginal costs.

Read the results from a survey of consumers in Anytown. • Fourteen percent of participants desire a store that offers custom-made shoes.• Thirteen percent of participants plan to purchase a new phone in the next year.• Fifty-two percent of participants think an additional pizza place is needed.• Twenty-one percent of participants say they purchase bagels on a daily basis. Based on the survey data, what will occur if a new pizza place opens?