Alejandro Scoobertini Owns a Store Specializing in Soccer Jerseys

question 52

Multiple Choice

Alejandro Scoobertini owns a store specializing in soccer jerseys.In 2016, he purchased $150,000 worth of jerseys from manufacturers, employed one worker for $40,000, purchased $20,000 worth of supplies from an office supply store, and sold jerseys for $280,000.Based on this information, what was the value added at Alejandro's store in 2016?

• A)$70,000
• B)$110,000
• C)$280,000
• D)$490,000

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Definitions:

Marginal Revenue

The added revenue obtained from trading an additional unit of a product or service.

Decreasing Cost Industry

An industry where an increase in production leads to a decrease in the average cost of producing each unit, often due to economies of scale.

Marginal Cost

Marginal cost refers to the increase in total cost that arises from producing one additional unit of a good or service.

Block Pricing

A pricing strategy where different quantities of a product or service are sold at different prices, usually implying that larger quantities are sold at a lower per-unit price.