Case Study: Starting a Business

Question 1

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 2

What did you discuss in your response? Check all that apply.

Revolt · Accepted Answer

how other factors, such as capital, competition, and supply, affected my decision

Question 3

Using the table, calculate the marginal cost of each quantity of shoe inserts.

Revolt · Accepted Answer

5.00; 7.00; 11.00

Question 4

Using this table, calculate the profit at each level of running shoe inserts production.

Revolt · Accepted Answer

⇒ 23: 23; ⇒ 51: 51; ⇒ 80: 80; ⇒ 109: 109; ⇒ 137: 137

Question 5

⇒ 51

Revolt · Accepted Answer

51

Question 6

⇒ 80

Revolt · Accepted Answer

80

Question 7

⇒ 109

Revolt · Accepted Answer

109

Question 8

⇒ 137

Revolt · Accepted Answer

137

Question 9

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 6

Question 10

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

Several microeconomic factors suggest the business will be successful. First, high customer demand indicates that there is a significant group of consumers willing and able to purchase the product or service at a specific price point. Second, a lack of direct competition in the local market suggests a supply gap that the business can fill. Finally, efficient management of production costs and a competitive pricing strategy will allow the business to maximize profit margins. The evidence for this claim comes from the initial market review, which showed a high volume of consumer interest contrasted with few existing competitors.

Case Study: Starting a Business Answers

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