Grace is a local artist who prints gift cards featuring a range of her beautiful hand drawings. Grace can print 6 gift cards for $6 and 7 cards for $6.50. Grace can sell each gift card for $5 at the weekend markets.

Which of the following statements are true:

Grace should not print the seventh gift card because the marginal cost is greater than the marginal benefit.

• The average benefit of printing a gift card is $5 per card
• The marginal revenue of the seventh gift card is $5 per card.
• The marginal cost of printing the seventh gift card is $0.50.

Jeremy is considering whether to go to the beach on the weekend. His alternatives, in order of preference from most to least preferred, are

1. Visiting his family

2. Studying for a test.

3. Working at his casual job for 5 hours with a wage of $15/hour.

Transcribed Image Text:

In considering whether to go to the beach, the value of casual work foregone be included in a marginal analysis. The opportunity cost of going to the beach is ▼ If going to the beach suddenly is not an option for Jeremy, then opportunity cost of visiting his family. 1. average cost 2. the net benefit of working at his casual job 3. should not is the 4. visiting his family 5. 5 hours 6. 7. 8. studying for a test 9. the net benefit of studying for a test marginal benefit marginal cost $15/hour 10. 11. working at his casual job should 12. In considering whether to go to the beach, the value of casual work foregone be included in a marginal analysis. The opportunity cost of going to the beach is ▼ If going to the beach suddenly is not an option for Jeremy, then opportunity cost of visiting his family. 1. average cost 2. the net benefit of working at his casual job 3. should not is the 4. visiting his family 5. 5 hours 6. 7. 8. studying for a test 9. the net benefit of studying for a test marginal benefit marginal cost $15/hour 10. 11. working at his casual job should 12.

Answer rating: 100% (QA)

Grace can print 6 cards for 6 Grace can print 7 cards for 65 Grace sell each gift card for 5 Option ... View the full answer