Advanced Placement (AP), 03.12.2020 14:00 keke6361
The information is for tape recorder erasers. President Nixon would like to purchase one of these from this company. To satisfy this extra demand the firm would have to produce a 203rd unit, causing its ATC to move to $203. Nixon offers to pay $250 for the eraser. He really needs it badly. For purely economic reasons and not for fame, should the firm produce this 203rd unit and sell it for $250?
A) No, because TR < TC and the company's profits would decline
B) Yes, because the company's TR > TC with this offer
C) Yes, because the company's profits would be $47
D) No, because the company would lose about $155
E) No, because the ATC is rising which means it is producing beyond where MC = ATC
Answers: 3
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The information is for tape recorder erasers. President Nixon would like to purchase one of these fr...
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