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Question 3 (2 points) Sandra runs a delivery business and employs three drivers. If she hires a fourth driver, her deliveries per day (Q) would
Question 3 (2 points) Sandra runs a delivery business and employs three drivers. If she hires a fourth driver, her deliveries per day (Q) would increase from 60 to 65. Her revenues would increase from $1500 to $1600 per day. But making the extra deliveries would also cost an extra $120 per day due to wages and gas charges. Should Sandra increase deliveries? 0 Yes, her MR > MC. O No, her MC > MR. 0 Yes, her MC > MR. 0 We cannot say from the given information. Question 4 (2 points) If the marginal revenue of a firm producing fidget spinners is currently $12 and the marginal cost is $8, the firm should: O increase output. Q We cannot say. O keep output the same. O decrease output. Question 5 (2 points) The price at which a baseball cap is sold at is $12. The firm's profit maximizing (or loss minimizing) quantity is 100. The fixed costs is $300, while the total cost of producing 100 caps is $1600. Should this firm stay in business? 0 Stay open. 0 Shut down. 0 We cannot say. 0 Do either
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