Jared runs a personal training studio and earned $5,000 last month. His fixed costs are $4,000 and variable costs are $3,500. Should Jared shut down his business immediately?

a) Yes, because he is clearly losing money.

b) Yes, because $5,000 cannot cover his fixed costs.

c) No, because $5,000 covers his fixed costs.

d) No, because $5,000 covers his variable costs.

Dimitri has several apple trees in his yard, and apples are a perfectly competitive market with a price of $2 per pound. If Dimitri sells apples at the farmer’s market, what is his total revenue and marginal revenue when he sells the 100th pound of apples?

a) total revenue is $2; marginal revenue is $2

b) total revenue is $200; marginal revenue is $2

c) total revenue is $2; marginal revenue is $200

d) total revenue is $200; marginal revenue is $200