If the Cost of Plaster and Labor Were $10 Per

question 3

Multiple Choice

if the cost of plaster and labor were $10 per gnome and everything else is as in the problem (gnome molds cost $1,000, interest rate is 10%) , what is the lowest price of gnomes at which there would be a positive supply in the long run?

• A)$10
• B)$11
• C)$20
• D)$12.20
• E)$12

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Definitions:

Cross-multiplication

A mathematical technique used to simplify or solve equations by multiplying the numerator of one fraction by the denominator of another.

X

Often used to represent an unknown variable in mathematics.

Unit Price

The unit price is the cost per unit of a product, allowing for a standard comparison of costs among different sized packages of the same item.

Ounce

A unit of weight used in the British, United States, and other Imperial systems, equivalent to one-sixteenth of a pound.