Table 16-3 Julie Plans to Start a Pet-Sitting Service. She Surveyed Her

question 162

Multiple Choice

Table 16-3

Julie plans to start a pet-sitting service. She surveyed her neighborhood to determine the demand for this service. Assume that each person surveyed demands only one hour of pet sitting services per period. Table 16-3 above shows a portion of her survey results.
-Refer to Table 16-3.Suppose Julie's marginal cost of providing this service is constant at $7 and she charges $7.How many hours will be purchased and what is her total revenue?

• A)5 hours; total revenue = $35
• B)4 hours; total revenue = $28
• C)3 hours; total revenue = $21
• D)2 hours; total revenue = $14

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Definitions:

Capital

Resources or assets used in the production of goods and services, such as machinery, buildings, and equipment.

Resources

Inputs used in the production of goods and services, including labor, capital, land, and technology.

New Capital

Funds or equity obtained by a company for the purpose of furthering its business objectives, or the addition of assets.

Investment

The action or process of allocating resources, usually money, with the expectation of generating an income or profit.