Case Study: Starting a Business

question

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

4
question

Based on the survey data, what will occur if a new pizza place opens?
answer

It will help to satisfy the demand
question

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

109
question

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

NOT the 3rd or 4th pair of cleats
question

Anytown households that earn more than $75,000 tend to buy sports equipment, while households that earn less than $75,000 tend to buy TVs. Which new business would be most likely to succeed?
answer

an electric store
question

Market saturation results from excess_______
answer

supply
question

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

Point Y
question

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

Points C & D
question

Standards of living is the level at which
answer

consumers enjoy desired goods
question

How can producers make the most profit?
answer

1,3,6 Not Good combination 2,4,5 1,4,6
question

A survey of hobbies and purchases can help a producer?
answer

assess demand to choose a business.
question

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

$2.00
question

Sabrina’s Soccer produces soccer balls and soccer nets, which are sold at sporting goods stores. Which factors directly affect the company’s profit? Check all that apply
answer

NOT 1,3,4
question

What is the difference between marginal cost and marginal revenue?
answer

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
question

Which statement correctly compares the two businesses?
answer

In case will require less costly investment in labor, while Wrap up will require less capital in the long term
question

What is the difference between absolute advantage and comparative advantage?
answer

Not Absolute advantage is the ability to sell a good or a service at a higher price than competitors. Comparative advantage is the ability to sell a good or service at a lower price than competitors.
question

Which statement correctly explains the chart?
answer

NOT The opportunity cost of producing one soccer net is eight soccer balls
question

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?
answer

NOT D
question

Stan’s Sporting Goods is a competitor that can manufacture seven soccer balls out of a possible ten, if it makes one soccer net. Which statement correctly compares the two businesses?
answer

Sabrina’s Soccer has a comparative advantage over Stan’s Sporting Goods because Sabrina’s Soccer has a lower opportunity cost.
question

Stan’s Sporting Goods is a competitor that can manufacture seven soccer balls out of a possible ten, if it makes one soccer net. Which statement correctly compares the two businesses?
answer

Sabrina’s Soccer has a comparative advantage over Stan’s Sporting Goods because Sabrina’s Soccer has a lower opportunity cost.
question

Stan’s Sporting Goods is a competitor that can manufacture seven soccer balls out of a possible ten, if it makes one soccer net. Which statement correctly compares the two businesses?
answer

Sabrina’s Soccer has a comparative advantage over Stan’s Sporting Goods because Sabrina’s Soccer has a lower opportunity cost.

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