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Principles of Economics, Quiz 1
A textile firm in Surat has already spent Rs. 8 lakh on a half-built showroom. Completing it requires an additional Rs. 2 lakh and will generate Rs. 5 lakh in revenue. An economist advising the firm should recommend:
A textile firm in Surat has already spent Rs. 8 lakh on a half-built showroom. Completing it requires an additional Rs. 2 lakh and will generate Rs. 5 lakh in revenue. An economist advising the firm should recommend: A multiplex in Pune screens a film at a fixed cost of Rs. 40,000, with 20 empty seats just before showtime. The marginal cost of admitting one more viewer (electricity, cleaning) is Rs. 15. A student offers Rs. 90. The average cost per seat is Rs. 200. The manager should: Kavya quits a job paying Rs. 9,00,000 per year to run a startup. To fund it she also withdraws Rs. 3,00,000 from a fixed deposit that was earning 8% annual interest (the Rs. 3,00,000 itself becomes business assets she still owns). Her annual opportunity cost is: