Homework Answers
Answer : Option A is correct. Cross price elasticity of demand is negative as it shows that good X and Good Y are complementary as price of one good increases than demand for another decreases.
Answer Option D is correct. Economic cost is combination of both cost related to the production as well as opportunity cost associated with it.
Economic cost =Rent and suppliers + opportunity cost = $25000+$45000= $70,000
Answer : Option D is correct.
Let price be x
Revenue =P*Q= 52000x
Total cost = Fixed cost + Variable cost = $79000+$52000+$156000= $287000
Normal profit =$25000
Profit =Revenue-Total cost
$25000= 52000x - $287000
287000+25000= 52000x
312000/52000=x
X=$6
The average price must be $6
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