When a Slice of Pizza at the Student Union Sold

question 140

Multiple Choice

When a slice of pizza at the student union sold for $2, Moe did not purchase any. When the price fell to $1.75, Moe purchased a slice each day for lunch. Thus, we can infer that Moe's reservation price for a slice of pizza is:

• A)less than $1.75.
• B)at least $1.75 but less than $2.
• C)exactly $1.75.
• D)exactly $2.00.

---

Definitions:

Maximize Profits

The process of increasing the difference between total revenue and total cost to the highest possible level.

Productivity Increase

A rise in the output of goods and services produced per unit of input, often due to improvements in technology, processes, or efficiency.

Marginal Revenue Product Curve

A graph showing the additional revenue generated by employing one more unit of a resource.

Factor of Production

An input used in the production of goods or services, such as labor, land, capital, and entrepreneurship.