Case Study: Starting a Business

Question 1

The first pair: $[___]

Revolt · Accepted Answer

5.00

Question 2

This graph shows the marginal cost of producing each additional pair of running shoe inserts.Based on the graph, which pair of shoes has a marginal cost of $3.00?Pair 2Pair 4Pair 6Pair 7

Revolt · Accepted Answer

C: Pair 6

Question 3

Pair 1: $[___]

Revolt · Accepted Answer

3.00

Question 4

This graph shows the marginal costs of each pair of running shoe inserts produced. Select the correct answer from the options available.At what level of production are you making the greatest profit?Pair 2Pair 4Pair 6 Pair 7

Revolt · Accepted Answer

C: Pair 6

Question 5

Using the table, calculate the marginal cost of each quantity of shoe inserts.

Revolt · Accepted Answer

⇒ 7: 28429; : 1; : 2

Question 6

In this lesson, you started by reviewing customer demand before choosing a business.What microeconomic factors point to the fact that your business should be successful? Be sure to provide evidence for your claim.

Revolt · Accepted Answer

Market research and consumer surveys indicate a high demand for custom outdoor shoe equipment in my area. Microeconomic factors such as consumer willingness and ability to pay, a high standard of living, and low existing competition for specialized footwear point to the success of The Shoe Hut. Unlike the coffee shop market, which is saturated and requires more capital, the shoe business addresses an unmet need with lower relative risk.

Question 7

After you analyzed demand, you took steps to make sure your business made sense financially.How will thinking on the margin help increase the chance of long-term success for your business, even if additional competition enters your community?

Revolt · Accepted Answer

Marginal analysis can help me determine the most profitable number of items to produce. It helps me see at what point the cost of producing another unit outweighs the profit I would make from it, allowing me to maximize overall business efficiency.

Question 8

The third pair: $[___]

Revolt · Accepted Answer

7.00

Question 9

Pair 2: $[___]

Revolt · Accepted Answer

10.00

Question 10

What did you discuss in your response? Check all that apply.

Revolt · Accepted Answer

AssessCtrl8c04fe86-deb3-11e2-adb8-bc764e043e0c_15396,AssessCtrl8c04fe86-deb3-11e2-adb8-bc764e043e0c_15397,AssessCtrl8c04fe86-deb3-11e2-adb8-bc764e043e0c_15398

Case Study: Starting a Business Answers

More from this Course

TRY EDGENUITY HACKS