Problem
1. Suppose that the manager of a donut shop tells you that he sold 220 donuts today, for a total revenue of $220 and average revenue of $0.90. What's wrong with this story?
2. Suppose a firm's output is small relative to the size of its market. Explain why this means the firm's marginal revenue will be equal to the market price.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.