Case Study: Starting a Business Answers

Profit equals the total amount of money made minus

The chart shows a production possibilities schedule for Sabrina’s Soccer. If the market for soccer balls is saturated and the market for soccer nets is open, which combination makes the most sense for Sabrina’s Soccer?

The graph shows a production possibilities curve for Sabrina’s Soccer. At which two points will Sabrina’s Soccer produce the most equal amounts of soccer balls and soccer nets?

The graph shows a production possibilities curve for Sabrina’s Soccer. At which point on the graph are resources not used efficiently?

How can producers make the most profit? Check all that apply.They can work to increase their marginal cost.They can work to decrease their marginal cost.They can raise prices to increase marginal revenue.They can lower prices to decrease marginal revenue.They can keep marginal costs below marginal revenues.They can keep marginal revenues below marginal costs.

Read the results from a survey of consumers in Anytown. • Fourteen percent of participants desire a store that offers custom-made shoes.• Thirteen percent of participants plan to purchase a new phone in the next year.• Fifty-two percent of participants think an additional pizza place is needed.• Twenty-one percent of participants say they purchase bagels on a daily basis. Based on the survey data, what will occur if a new pizza place opens?

The chart shows a production possibilities schedule for Sabrina’s Soccer. Stan’s Sporting Goods is a competitor that can manufacture seven soccer balls out of a possible ten, if it makes one soccer net. Which statement correctly compares the two businesses?

Read the factors of production for two businesses: In Case manufactures cases for smart phones, while Wrap It Up is a gift-wrapping service. In Case• $1,500 a month for rented building• Will need two new employees• $2,000 for inventory expenses• $4,500 for equipment expenses Wrap It Up • $1,500 a month for a rented store• Will need five new employees• $1,500 for inventory expenses• $2,500 for equipment expensesWhich statement correctly compares the two businesses?

The graph shows the marginal cost of producing soccer cleats for Sabrina’s Soccer. At which level of production does the company make the least profit?

Standard of living is the level at which