A snowboard company hires 10 skilled employees who are paid a weekly wage of $1000. The cost of capital is $3000 and it is fixed, which means that it does not vary with output. The company is currently producing 240 snowboards. The company's cost will be $13500 if it produces an additional snowboard. A customer is willing to pay $550 for the 241st snowboard. a) Should the company produce and sell it. YES/ NO b) Explain c) What core principles are considered in the snowboard company's decisionmaking? i) Scarcity, Chioce and Opportunity Cost ii) Cost benifit analysis iii) Incentive principle iv) Diminishing returns Select one: 1. All principles are considered 2. (i) only 3. (i) and (ii) only 4. (i), (ii) and (iii) only 5. (ii) and (iii) only 6. (i) and (iv) only 7. (ii) and (iv) only 8. (iii) and (iv) only 9. (ii), (iii) and (iv)
A snowboard company hires 10 skilled employees who are paid a weekly wage of $1000. The cost of capital is $3000 and it is fixed, which means that it does not vary with output. The company is currently producing 240 snowboards. The company's cost will be $13500 if it produces an additional snowboard. A customer is willing to pay $550 for the 241st snowboard.
a) Should the company produce and sell it. YES/ NO
b) Explain
c) What core principles are considered in the snowboard company's decisionmaking?
i) Scarcity, Chioce and
ii) Cost benifit analysis
iii) Incentive principle
iv) Diminishing returns
Select one:
1. All principles are considered
2. (i) only
3. (i) and (ii) only
4. (i), (ii) and (iii) only
5. (ii) and (iii) only
6. (i) and (iv) only
7. (ii) and (iv) only
8. (iii) and (iv) only
9. (ii), (iii) and (iv)
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