Answered: Coldwater Bicycle Company operates its…

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter26: Factor Markets: With Emphasis On The Labor Market

Section: Chapter Questions

Problem 13QP

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1. Coldwater Bicycle Company operates its factories at capacity and holds a dominant market position in its home country. When it receives a premium priced order from a new customer in another country, it must decide whether to fill that order or continue to supply the full demand in its home market. When it decided not to completely fill the new order, it incurred

Group of answer choices

a. Sunk costs

b. Average costs

c. Opportunity costs

d. Marginal costs

2. What might happen if a car dealership is awarded a bonus by the manufacturer for selling a certain number of its cars monthly, but the dealership is just short of that quota near the end of the month?

Group of answer choices

a. Potential buyers will lose buying power at the dealer

b. It may sell the remaining cars at huge discounts to hit the quota

c. It creates an incentive to sell cars from different manufacturers

d. It would ruin the relationship between dealer and manufacturer

3. If Jackie wanted to determine whether to produce more product in her company, she would do so if

Group of answer choices

a. Marginal revenue exceeded average cost

b. Marginal cost was greater than marginal revenue

c. Average cost exceeded marginal cost

d. Marginal revenue was greater than marginal cost

Thank you!.

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