Steve Johnson Has Decided to Lease a Vehicle as Opposed

question 26

Multiple Choice

Steve Johnson has decided to lease a vehicle as opposed to purchasing it.The lease agreement calls for a monthly payment of $400.Any mile driven above 1,000 per month will cost an additional $.10 per mile.If Steve drives 1,240 miles in the month of January his total cost will be:

• A)$400
• B)$640
• C)$524
• D)$424

---

Definitions:

U.S. Farm Products

Agricultural goods produced in the United States, which include a wide range of food and raw materials.

Foreign Tariffs

Taxes imposed by a government on goods and services imported from other countries, often used to protect domestic industries.

Agricultural Commodities

Basic goods used in food production and obtained from farming activities, like grains, livestock, and dairy.

Marginal Utility

The extra utility a consumer obtains from the consumption of 1 additional unit of a good or service; equal to the change in total utility divided by the change in the quantity consumed.