Table 14-6 There Are Two Mobile Home Manufacturers in Nevada, Sturdy Homes

question 122

Multiple Choice

Table 14-6

There are two mobile home manufacturers in Nevada, Sturdy Homes (S) and My Haven (M) .Sturdy Homes has been in the market for a long time and must now compete with newcomer, My Haven.Suppose that Sturdy Homes believes that My Haven will match any price it sets.Use Table 14-6 to answer the following question and assume throughout that Sturdy Homes believes that My Haven will match any price it sets.
-Refer to Table 14-6.What price will Sturdy Homes charge and what profit does Sturdy Homes expect to make?

• A)Price = $8,000; expected profit = $7 million
• B)Price = $8,000; expected profit = $4 million
• C)Price = $10,000; expected profit = $5 million
• D)Price = $12,000; expected profit = $3 million

Describe the conditions for full employment and how they relate to the production possibilities frontier.

Recognize the factors that can cause shifts in or movements along the production possibilities frontier.

Understand the role and characteristics of entrepreneurship in economic success.

Identify the causes and implications of operating inside or outside the production possibilities frontier.

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Definitions:

Psychological Closeness

A sense of emotional intimacy and connection between individuals, regardless of their physical proximity.

Independent Housing Unit

A dwelling place designed for use by a single household, often offering private amenities and living spaces.

Medical Providers

Professionals involved in delivering healthcare services, such as doctors, nurses, and therapists.

Single-Person Households

Living arrangements in which an individual lives alone in a separate housing unit, reflecting certain social and economic trends.