Refer to the Following Case as You Respond to the Next

question 20

Multiple Choice

Refer to the following case as you respond to the next question: The Celebration Theatre is a small, independent theatre that puts on 12 plays per year. 30 days before the start of each calendar quarter, Celebration prepares advertising for the productions in the upcoming quarter. They advertise on their web site, via e-mail to their season subscribers and via direct mail and brochures to others.Patrons can buy tickets for a single play; alternatively, they can subscribe to all three plays each quarter. Quarterly subscriptions offer a 25% discount from the prices of single tickets. Patrons may purchase tickets over the phone, at the box office or via the theatre's web site. All tickets are held at the box office where they can be picked up as early as one week prior to the performance. The theatre has an "open seating" plan, so patrons do not reserve a specific seat at any performance.If tickets are purchased in person at the box office, non-subscribers may pay with cash or a major credit card; subscribers can pay with cash, major credit card or check. All tickets purchased over the phone or via the web site must be paid for with a major credit card. Celebration maintains an electronic database to track all ticket sales; paper tickets are printed at least ten days prior to a performance.Any paid tickets that are not claimed at least thirty minutes prior to the performance are sold on a "first-come, first-serve" basis at a 50% discount.The first step in creating a flowchart is to define the system boundary. Which of the following is most likely to be outside the system boundary?

• A)Patrons
• B)Theatre personnel
• C)Box office
• D)Advertising firm

Understand the concept of marginal cost and its relationship with average costs.

Identify the conditions under which average variable and total costs increase or decrease.

Determine the output level that minimizes average variable costs.

Analyze the impact of changes in production levels on marginal cost.

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Definitions:

Metals

Elements that are typically hard, shiny, malleable, fusible, and conductive, often used for electrical wiring, building materials, and tools.

Alkaline

A type of basic, as opposed to acidic, substance; in batteries, it refers to a type using alkaline electrolytes such as potassium hydroxide, known for long life and steady power output.

P-Type

A type of semiconductor material that is doped with elements which create excess positive charge carriers or holes.

N-Type

A category of semiconductor material where the charge carriers are predominantly electrons, achieved by doping the material with elements having more valence electrons than the semiconductor.