Arlo Is Offered a Job in Des Moines,where the CPI

question 28

Multiple Choice

Arlo is offered a job in Des Moines,where the CPI is 60,and a job in New York,where the CPI is 125.Arlo's job offer in Des Moines is for $48,000.How much does the New York job have to pay in order for the two salaries to represent the same purchasing power?

• A)$23,040
• B)$52,000
• C)$79,200
• D)$100,000

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Definitions:

Average Fixed Cost

The steady costs associated with production, irrespective of output volume, divided by the number of units produced.

Marginal Cost

The added cost faced when one additional unit of a product or service is produced.

Average Total Cost

The total cost of production divided by the quantity of output produced; it includes both fixed and variable costs.

Average Total Cost

The total cost of production divided by the number of units produced, encompassing both fixed and variable costs.