Smittys hot boiled peanuts recently reported that its

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College Accounting, Chapters 1-27
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Chapter 13 / Exercise 7
College Accounting, Chapters 1-27
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27.“Smitty's Hot Boiled Peanuts" recently reported that its revenue increased from the previous quarter, along with its profits. What is the most likely explanation for this change, if the only change Smitty’s made was in its price? a.Price decreased and demand was inelastic. b.Price increased and demand was inelastic. **c.Demand was unit elastic. d.Price decreased and demand was elastic.
28.Management at the East Alabama Motor Speedway estimates that the "Friday Night Fanatics" would continue to enthusiastically pack the house (every ticket would be sold) even after a 35% increase in the price of admission. Apparently the E.A.M.S is operating in the ______ portion of their ______ curve.
29.Which of the following would most likely make the demand for an item more elastic?
30.Which of the following is the reason for the existence of consumer surplus?
**31.The data below are for a competitive business (price-taker). If the market price is $800 per unit, the company should 8
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College Accounting, Chapters 1-27
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Chapter 13 / Exercise 7
College Accounting, Chapters 1-27
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OutputAverage Fixed CostsAverage Variable CostsAverage Total CostsMarginal Cost0$3,0001$3,000$900$3,900$9002$1,500$800$2,300$7003$1,000$700$1,700$5004$750$600$1,350$3005$600$500$1,100$1006$500$550$1,050$8007$429$600$1,029$9008$375$650$1,025$1,0009$333$700$1,033$1,10010$300$750$1,050$1,200a.shut down (produce nothing).b.produce four units. c.produce six units. **d.produces as much as possible.
32.The data below are for a competitive business (price-taker). If the market price is $300 per unit, the company should OutputAverage Fixed CostsAverage Variable CostsAverage Total CostsMarginal Cost0$3,0001$3,000$900$3,900$9002$1,500$800$2,300$7003$1,000$700$1,700$5004$750$600$1,350$3005$600$500$1,100$1006$500$550$1,050$8007$429$600$1,029$9008$375$650$1,025$1,0009$333$700$1,033$1,10010$300$750$1,050$1,200
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