Farmer Jones knows that the marginal cost to produce a bushel of tomatoes is $3 per bushel. He also knows that a consumer is willing to pay a maximum of $10 for the bushel. The price of the bushel is $7 and Farmer Jones sells his bushel for $7. On this bushel, Farmer Jones earns a producer surplus equal to $ .

Costs of production that do not change when output changes.question 17 options: total revenuefixed incometotal costfixed cost

Lillypad toys is a manufacturer of educational toys for children. six months ago, the company's research and development division came up with an idea for a unique touchscreen device that can be used to introduce children to a number of foreign languages. three months ago, the company produced a working prototype, and last month the company successfully launched its new device on the commercial market. what should lillypad's managers prepare for next? a. increased competition from imitators b. a prolonged period of uncontested success c. a sharp decline in demand for the product d. a difficult struggle to move from invention to innovation

Mordica company identifies three activities in its manufacturing process: machine setups, machining, and inspections. estimated annual overhead cost for each activity is $156,960, $382,800, and $84,640, respectively. the cost driver for each activity and the expected annual usage are number of setups 2,180, machine hours 25,520, and number of inspections 1,840. compute the overhead rate for each activity. machine setups $ per setup machining $ per machine hour inspections $ per inspection