Untitled Quiz

Questions and Answers

If Sabrina's Soccer makes 3 nets, how many balls can the company produce?

What will occur if a new pizza place opens based on the survey data?

It will help to satisfy the demand

How much profit does the company make from producing and selling four soccer nets?

109

At which level of production does the company make the least profit?

NOT the 3rd or 4th pair of cleats Signup and view all the answers

Which new business would be most likely to succeed in Anytown, based on household income?

an electric store Signup and view all the answers

Market saturation results from excess ________

supply Signup and view all the answers

At which point on the graph are resources not used efficiently?

Point Y Signup and view all the answers

At which two points will Sabrina's Soccer produce the most equal amounts of soccer balls and soccer nets?

Points C & D Signup and view all the answers

Standards of living is the level at which...

consumers enjoy desired goods Signup and view all the answers

How can producers make the most profit? (Select all that apply)

1, 4, 6 Signup and view all the answers

A survey of hobbies and purchases can help a producer?

assess demand to choose a business Signup and view all the answers

What is the marginal cost of producing a 5th soccer net?

$2.00 Signup and view all the answers

Which factors directly affect the company's profit? (Select all that apply)

NOT 1, 3, 4 Signup and view all the answers

What is the difference between marginal cost and marginal revenue?

NOT Marginal cost is the money a producer earns from selling one more unit, while marginal revenue is the money a producer pays for making one more unit Signup and view all the answers

Which statement correctly compares the two businesses?

In case will require less costly investment in labor, while Wrap up will require less capital in the long term Signup and view all the answers

What is the difference between absolute advantage and comparative advantage?

Not Absolute advantage is the ability to sell a good or service at a higher price than competitors. Comparative advantage is the ability to sell a good or service at a lower price than competitors. Signup and view all the answers

Which statement correctly explains the chart?

NOT The opportunity cost of producing one soccer net is eight soccer balls Signup and view all the answers

If the market for soccer balls is saturated and the market for soccer nets is open, which combination makes the most sense for Sabrina's Soccer?

NOT D Signup and view all the answers

Which statement correctly compares Stan's Sporting Goods and Sabrina's Soccer?

Sabrina's Soccer has a comparative advantage over Stan's Sporting Goods because Sabrina's Soccer has a lower opportunity cost. Signup and view all the answers

Study Notes

Soccer Business Operations

Sabrina's Soccer produces 3 nets and can generate a total of 4 soccer balls.
Profit from selling four soccer nets is approximately $109.
Company profitability is lowest not at the 3rd or 4th pairs of cleats, indicating a specific point of inefficiency.

Market Analysis

New pizza establishment would help meet existing customer demand.
An electric store is likely to thrive in Anytown due to households earning above $75,000 preferring sports equipment over TVs.
Market saturation occurs due to excess supply, potentially leading to reduced demand.

Production and Efficiency

Point Y on the production graph indicates inefficient resource use.
Highest simultaneous production of soccer balls and nets occurs at Points C & D.

Economic Concepts

Standards of living refer to how well consumers are able to obtain goods they desire.
Producers maximize profits through specific combinations of production outputs.
Marginal cost of producing an additional 5th soccer net is calculated at $2.00.

Consumer Behavior and Surveys

Conducting surveys about hobbies can aid producers in assessing demand for business purposes.
Understanding the difference between marginal cost (cost of production) and marginal revenue (earnings from sales) is critical, they are inversely related.

Comparative Advantages

Absolute advantage allows selling goods at higher prices; comparative advantage allows for selling at lower costs.
Sabrina's Soccer has a comparative advantage over Stan's Sporting Goods due to lower opportunity costs in production decisions.

Business Strategy

Selection of business strategies is influenced by competitive landscape and production capabilities.
Recognition of opportunity costs is essential for effective decision-making in production scenarios.