-The Table Above Shows Output and Costs of Evan's Subs

question 243

Multiple Choice

-The table above shows output and costs of Evan's Subs, a typical perfectly competitive firm in a local market for sandwiches. Evan's fixed cost is $9 per hour. The current market price of a sandwich is $6. What quantity of sandwiches produced will maximize Evan's economic profit in the short run?

• A) 2 sandwiches per hour
• B) 3 sandwiches per hour
• C) 4 sandwiches per hour
• D) 5 sandwiches per hour

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Definitions:

Voluntary Turnover

Occurs when employees choose to leave a company for personal reasons, such as a new job opportunity or relocation.

Downsizing

The process of reducing the size of a company's workforce to cut costs, which can involve layoffs, selling parts of the business, or outsourcing.

Outsourcing

The practice of hiring third parties to perform services or create goods that were previously done in-house, often to cut costs or improve efficiency.

Core Business

The primary area of a company's operation or the main source of its profitability, representing its fundamental mission or the key focus of its commercial activity.