Question

3) You have started a small business that sells kombucha. To set up your factory you had to buy materials for a total of $100 dollars, with a resell value of $80. Each hour that you spend working on the kombucha you could have earned $10 per hour on a salaried job. You produce 5units of kombucha per hour. Below which price you should exit your business in the long run? (hint: build a table of costs or write down a formula for ATC and MC.) (a) $12 per unit (b) $6 per unit (c) $2 per unit (d) $22 per unit

Answer 1