Use the Information Below to Answer the Following Questions

question 21

Multiple Choice

Use the information below to answer the following questions.
Fact 13.3.3
Suppose that Roots' marginal cost of a jacket is a constant $125.00 and the total fixed cost at one of its stores is $1,500 a day.This store sells 20 jackets a day,which is its profit-maximizing number of jackets.Then the stores nearby start to advertise their jackets.The Roots store now spends $2,000 a day advertising its jackets,and its profit-maximizing number of jackets sold jumps to 70 a day.
-Refer to Fact 13.3.3.After the advertising begins,the average total cost of a jacket sold in this store is

• A)$200.00.
• B)$175.00.
• C)$150.00.
• D)$125.00.
• E)$100.00.

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Definitions:

Decision Making

The process of making choices by identifying a decision, gathering information, and assessing alternative resolutions.

Actively Listening

The process of fully concentrating, understanding, responding, and remembering what is being said in a conversation.

Job Interview

A formal meeting between a job applicant and a potential employer where the applicant is assessed for suitability for a specific position.

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The act of two individuals looking into each other's eyes, which is often interpreted as a sign of attention, confidence, or sincerity.