Robin owns a horse stables and riding academy and gives riding lessons for children at “pony camp.” her business operates in a competitive industry. robin gives riding lessons to 20 children per month. her monthly total revenue is $4,000. the marginal cost of pony camp is $200 per child. in order to maximize profits, robin should(a) give riding lessons to more than 20 children per month.(b) give riding lessons to fewer than 20 children per month.(c) continue to give riding lessons to 20 children per month.(d) we do not have enough information to answer the question.

while setting up his new office, an attorney ordered thick, frieze carpets for the floor. however, the building inspector had him remove the expensive carpeting. the building inspector stated that according to federal regulations, the office must be wheelchair accessible as it is a public area. he further explained that since wheelchairs do not maneuver well in thick, frieze carpeting, the carpets had to be removed and be replaced with smooth-textured carpets that do not restrict wheelchair maneuverability. this scenario illustrates how a company is influenced by the component of its specific environment.

Perez, inc., applies the equity method for its 25 percent investment in senior, inc. during 2018, perez sold goods with a 40 percent gross profit to senior, which sold all of these goods in 2018. how should perez report the effect of the intra-entity sale on its 2018 income statement?

Define the marginal rate of substitution between two goods (x and y). if a consumer’s preferences are given by u(x, y) = x3/4y1/4, compute the consumer’s marginal rate of substitution as a function of x and y. calculate the mrs if the consumer has chosen to consumer 48 units of x and 16 units of y. show your work. (use the back of the page if necessary.