Quiz Space

Managerial Economics · Quiz 1 · 25 Feb 2024 · January 2024 term

Question 16: Should you sell the Fritos to the fraternity?

Question 16

+1 markOne correct option

Last week you purchased five large cases of Fritos for a customer who, as it turned out, did not accept delivery. You paid $100 for these cases. You have a deal with your grocers that they will pay you $0.25 for each dollar of returned merchandise. Just this week, you found a fraternity on campus that will buy the five cartons for $55 (and will pick them up from your apartment, relieving you of the need to deliver them to the frat house).
Based on the above data, answer the given subquestions.

Should you sell the Fritos to the fraternity?

  1. A

    Yes

  2. B

    No

Show answer

Correct answer

  • A

    Yes

See the whole paperTake it as a mock test

Question 16 of 19 in the IIT Madras BS Managerial Economics (Managerial Economics) Quiz 1 paper sat on 25 Feb 2024, in the January 2024 term (IIT M DEGREE AN2 EXAM QDB2 25 Feb 2024). It carries 1 mark.

This question was also asked in

More questions from this paper

  1. Q1The Cobb-Douglas production function F(K, L)=K^(p)L^(q)
  2. Q2When one is not able to compare two goods and is confused about which one to choose, his preference violates
  3. Q3When a person prefers Mango to Apple, Apple to Guava and Guava to Mango, his preference violates
  4. Q4The marginal product of labour is defined as
  5. Q5If marginal costs equal average total costs
  6. Q6If the firm is currently using 3 hours of labour for each hour of machine time, is it minimizing its costs of productio…
  7. Q7If not, what will be the optimal combination of labour L=
  8. Q8If not, what will be the optimal combination of capital K=_
  9. Q9What will be the optimal capital-labour ratio
  10. Q10Optimal level of Labour (L) for producing 10000 units of output will be
  11. Q11Optimal level of capital (K) for producing 10000 units of output will be_
  12. Q12Minimized cost corresponding to 10000 units of output will be
  13. Q13If Elmo has 2 quarters and a dime in his pockets, he can buy 1 soft drink. How many soft drinks can he buy if he has 4 …
  14. Q14Does Elmo have convex preferences between dimes and quarters?
  15. Q15What is the opportunity cost of filling this order (i.e., selling these cartons to the\ fraternity)?_(in \$)
  16. Q17What will be the average fixed cost if company produces 100 units _
  17. Q18What is marginal cost of company at q=25? _
  18. Q19What is average variable cost at q=25?