Use the Following to Answer Question

question 49

Multiple Choice

Use the following to answer question:
-(Table: Cakes) Use Table: Cakes.Pat is opening a bakery to make and sell special birthday cakes.She is trying to decide how many mixers to purchase.Her estimated fixed and average variable costs if she purchases 1,2,or 3 mixers are shown in the table.Assume that average variable costs do not vary with the quantity of output.If Pat purchases 3 mixers and bakes 400 cakes per day,what is her average fixed cost?

• A)$0.05
• B)$2.50
• C)$5.00
• D)$6.25

Explain how taxes, subsidies, and other policy measures can be used to achieve socially optimal levels of production and consumption.

Describe network externalities and their impact on market outcomes.

Interpret graphical representations of marginal private and social benefits and costs.

Understand the concepts of private and external benefits in the context of public goods and common resources.

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Definitions:

Confidence Interval

A variety of values taken from sample data, expected to encompass the value of a not yet known population attribute.

Standard Error

A common measure of variability within a sample's distribution, particularly focused on the mean.

Confidence Interval

A range of values, derived from a set of sample data, that is likely to contain the value of an unknown population parameter.

Mean

The arithmetic average of a set of numbers, calculated by adding all the numbers together and dividing by the count of the numbers.