Elasticity and Incentives

Question 1

Ed's revenue from selling his most popular arrangement is .

Revolt · Accepted Answer

$45

Question 2

Ed's total production costs for one flower arrangement are .

Revolt · Accepted Answer

$22

Question 3

Ed's profit on each arrangement is .

Revolt · Accepted Answer

$23

Question 4

The marginal cost to produce the first pie is .

Revolt · Accepted Answer

$1.00

Question 5

The profit when the company makes five widgets is .

Revolt · Accepted Answer

$30

Question 6

To maximize profit, the company should produce widgets per day.

Revolt · Accepted Answer

six

Question 7

The difference in marginal cost between the production of the second pie and the seventh pie is .

Revolt · Accepted Answer

$2.25

Question 8

The company's profits would decrease by if the company made seven widgets.

Revolt · Accepted Answer

$17

Elasticity and Incentives Answers