Sports Equipment Produces Basketballs

Question 1Framjam Sports Equipment produces basketballs at its factory in Kentucky and soccer balls at its factory in Illinois. At its current annual rate of production, the cost of producing soccer balls is $75,000 and the cost of producing basketballs is $35,000. If the firm consolidates production at a single location, the annual cost of production will be $100,000. What is the degree of economies of scope in this case?Select one:A. 4B. 5C. 0.90D. 0.10E. 1.15Question 2Trudeau's Body Shop incurs total costs given by TC = 2,400 + 100Q. If the price it charges for a paint job is $120, what is its break-even level of output?Select one:A. 20 paint jobsB. 40 paint jobsC. 60 paint jobsD. 90 paint jobsE. 120 paint jobsQuestion 3NIn the above figure, if price is equal to P1, the firm willSelect one:A. shut down.B. earn positive economic profits.C. incur an economic loss.D. earn zero economic profits.Question 4The per-week demand for use of the Golden Gate Bridge in San Francisco is P = 13 - 0.15Q during peak traffic periods and P = 10 - 0.1Q during off-peak hours, where Q is the number of cars crossing the bridge in thousands