If a Firm Can Sell a Product for $40 Each

question 56

Multiple Choice

If a firm can sell a product for $40 each, then what is the volume needed to break-even if the fixed cost of production is $125,000 and labour and material costs are $30 per item?

• A) 125,000
• B) 12,500
• C) 4,167
• D) 3,250

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Definitions:

Abolitionists

Individuals who advocated for the ending of slavery and campaigned for emancipation in the United States before and during the Civil War.

American Temperance Society

A societal organization founded in 1826 with the goal of promoting abstinence from alcohol, it played a crucial role in the early temperance movement in the United States.

Drunkards

Individuals who habitually consume alcohol to excess, often leading to social, legal, or health issues.

Occasional Drinker

A person who consumes alcoholic beverages infrequently or in moderation.