1)Sage is a florist and sells their flowers in a perfectly competitive market. Sage produces 10,000 bundles of flowers for an average total cost of $11.00, marginal cost of $10.75, and average variable cost of $10.65. In the short-run, Sage should produce more flowers if the current price is above ______ and should shut down if the current price is below ______ .

Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer.

a

$11.00; $10.75

b

$11.00; $10.55

c

$10.75; $10.65

d

$10.75; $10.55

e

$10.65; $10.65

f

$10.65; $10.55

2)A company's marginal cost has a minimum value of $4; its average variable cost has a minimum value of $9; and its average total cost has a minimum value of $10. Given this information, the company should exit at any price below ______ and shut down at any price below ______ .

Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer.

a

$4; $9

b

$9; $4

c

$4; $10

d

$10; $4

e

$9; $10

f

$10; $9

3) Your local pet caf has the following costs: $3,000 per month in rent, $5,000 per month in wages, $3,000 per month in food and supplies, and $1,500 per month in insurance. All of the costs of production, excluding their rent and insurance, can vary, depending on how many coffees are sold at the caf. The pet caf's monthly sunk cost is: