A local sandwich shop faces the following costs of production per hour depending on how many sandwiches it makes.

Suppose that the market for sandwiches is perfectly competitive. If the market price of a sandwich is $3.50, the shop will make sandwiches per hour.

George owns a cake shop, which he spends his days managing. If he were to shut it down, he could work as pastry chef earning $400 per day. He also pays $200 per day to rent the building. His expenses on staff and ingredients depend on how many cakes his shop makes per day and are given by the following table.

If George’s shop produces 8 cakes, his marginal cost is _____, and his average cost is _____.

Which of the following is most likely to increase (the absolute value of) the price elasticity of demand for a particular brand of work boots?

GreenTech Inc. is contemplating the launch of a new line of eco-friendly products. The decision is partly driven by the growing consumer demand for sustainable goods. In an instrumental approach, what factor should primarily influence GreenTech Inc.'s decision? 

Suppose that the market for printer paper is in equilibrium. Then, suppose that the increased use tablets causes the number of documents printed by the average person to decrease. At the same time, the price of wood pulp used to make paper increases. This would cause the market equilibrium price to _____ and quantity to _____.

When a product is bought from the supermarket, the contract is usually formed:  

In considering the ripple effect, some stakeholders are described as primary and others as belonging to ‘wider society’, but at the beginning of this course we classified stakeholders into three groups: organisation, market and society.

Which of the following are NOT true? Please select all that apply.

Note: Negative marks apply for incorrect selections.