Use the Following to Answer Questions

question 61

Multiple Choice

Use the following to answer questions:
Scenario: Betty's Cookie Shop
Betty runs a cookie shop where she sells cookies for $1 each. She employs five people, each of whom worked a total of 500 hours last year; she paid them $10 per hour. Her costs of equipment and raw materials add up to $75,000. Her business ability is legendary, and other companies have offered to pay Betty $100,000 to come to work for them. She also knows she could sell her cookie shop for $150,000. The bank in town pays an annual interest rate of 3% on all funds deposited with it.
-(Scenario: Betty's Cookie Shop) Betty's explicit costs are equal to:

• A) $100,000.
• B) $80,000.
• C) $250,000.
• D) $264,000.

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Definitions:

Prevention

Measures taken to stop something detrimental from happening or to mitigate its effects, often used in the context of health, crime, or disaster.

Foreign Policy

A government's strategy in managing its relationships with other nations, concerning diplomacy, trade, and national security.

Soviet Union

A former socialist state that existed from 1922 to 1991, officially known as the Union of Soviet Socialist Republics (USSR), comprised of Russia and several other republics.

Collapse

Collapse refers to a sudden failure or downfall of a structure, system, economy, or society, often resulting from internal weaknesses or external pressures.