You work for TelCo, which is a telecommunications network operator with the greatest coverage in Australia measured in both land mass and population. TelCo has struck a deal with one of the National Disability Insurance Scheme providers, NDisco! which allows NDisco! To sell TelCo services and mobile plans under the TelCo brand. NDisco! has become one of your best distribution channels. The CEO of TelCo asks you to find out how NDisco! has become so successful. You find to your horror that NDisco! has been successful by selling post-paid mobile contracts to people with long-term mental health issues who did not understand, or could not afford, the products and services. What do you do? 

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 _____.

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.

Suppose that Ron and Karen have a boutique bakery where they make only cakes and biscuits. Their daily productivity is reported in the table below.

Ron’s opportunity cost of producing a kilogram of cake is kg of biscuits.

Suppose there is a flood that damages the iceberg lettuce crop. At the same time, there is a 20% off sale for spinach, a substitute for iceberg lettuce. 

What will happen to the equilibrium price and quantity of iceberg lettuce following these two events?