A Couple Is About the Get Married

question 18

Multiple Choice

A couple is about the get married. They decide to start a joint bank account to save for a house. They want to have an initial investment of $9000. The first partner contributes $350 more than three-quarters what the second partner contributes. How much does each partner contribute?

• A) P1 = 4557.14, P2 = 4442.86
• B) P1 = 3557.14, P2 = 5452.86
• C) P1 = 4057.14, P2 = 4942.86
• D) P1 = 5057.14, P2 = 3942.86
• E) P1 = 5857.14, P2 = 3992.86

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Definitions:

MC = ATC

This is the point where Marginal Cost equals Average Total Cost, typically illustrating the most efficient scale of production in the short run.

Perfectly Competitive

A market structure characterized by a large number of small firms, identical products, and free entry and exit, which leads to firms being price takers.

Smartphones

Mobile phones that offer advanced functionalities, including internet connectivity, apps, and touchscreen interface.

MC < ATC

A condition where the marginal cost of producing an additional unit is less than the average total cost, implying the company can lower its average total cost by increasing production.