You are the manager of a local sporting goods store and recently purchased a shipment of 60 sets of ski an ski bindings at a total cost of $30,000 (your wholesale supplier would not let you purchase the skis and bindings separately, nor would it let you purchase fewer than 60 sets). the community in which your store is located consists of many different types of skiers, ranging from advanced to beginners. from experience, you know that different skiers values skis and bindings differently. however, you cannot profitably price discriminate because you cannot prevent resale. there are about 20 advanced skiers who value skis at $350 and ski bindings at $250; 20 intermediate skiers who value skis at $250 and ski bindings at $275, and 20 beginning skiers who value skis at $175 and ski bindings at $325. compare the profits earned under two pricing strategies: a. selling skis and bindings separately at the profit-maximizing prices. b. bundling skis and bindings and selling for one price.

Which of the following would cause a shift to the right of the supply curve for gasoline? i. a large increase in the price of public transportation. ii. a large decrease in the price of automobiles. iii. a large reduction in the costs of producing gasoline

6. why the aggregate supply curve slopes upward in the short run in the short run, the quantity of output that firms supply can deviate from the natural level of output if the actual price level in the economy deviates from the expected price level. several theories explain how this might happen. for example, the misperceptions theory asserts that changes in the price level can temporarily mislead firms about what is happening to their output prices. consider a soybean farmer who expects a price level of 100 in the coming year. if the actual price level turns out to be 90, soybean prices will , and if the farmer mistakenly assumes that the price of soybeans declined relative to other prices of goods and services, she will respond by the quantity of soybeans supplied. if other producers in this economy mistake changes in the price level for changes in their relative prices, the unexpected decrease in the price level causes the quantity of output supplied to the natural level of output in the short run.

Camping gear, inc. had 500 units of inventory on hand at the end of the year. these were recorded at a cost of $ 13 each using the lastminusin, firstminusout (lifo) method. the current replacement cost is $ 9 per unit. the selling price charged by camping gear, inc. for each finished product is $ 14. as a result of recording the adjusting entry as per the rule, the gross profit will