MrFreezee Operates a Fleet of Ice Cream Trucks That Drive

question 13

Multiple Choice

Mr.Freezee operates a fleet of ice cream trucks that drive around neighborhoods selling ice cream.He is trying to decide whether he should buy another ice cream truck to add to his fleet.He determines that one more truck will add $750 to his revenue but that the truck will also increase his costs by $1,000.Based on marginal analysis,Mr.Freezee decides:

• A)that he should not purchase the truck since the costs outweigh the benefits.
• B)that he should purchase the truck since the benefits outweigh the costs.
• C)that he should purchase the truck since his profits will rise by $250.
• D)to purchase several trucks with the same costs and benefits.

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Definitions:

Responsiveness

The quality of reacting quickly and positively.

Withdrawal of Love

A psychological or emotional condition where an individual withholds affection or emotional support as a form of punishment or manipulation.

Privilege Removal

A disciplinary or behavioral management technique involving taking away certain privileges as a consequence for unwanted behavior.

Restrictive

Imposing limits or controls on someone's actions or on the extent of something's use or operation.