Table 13-2 Adrienne's Premium Boxing Service Subcontracts with a Chocolate Manufacturer to Manufacturer

question 71

Multiple Choice

Table 13-2
Adrienne's Premium Boxing Service subcontracts with a chocolate manufacturer to box premium chocolates for their mail order catalogue business.Adrienne rents a small room for $150 a week in the downtown business district that serves as her factory.She can hire workers for $275 a week.Costs are in dollars per week.
-Refer to Table 13-2.During the week of 25 April, Adrienne doesn't box any chocolates.What are her costs during the week?

• A)$0
• B)$75
• C)$150
• D)$425

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Definitions:

Subsidies

Financial contributions provided by governments to support businesses, reduce the prices of commodities, or encourage activities beneficial to the public interest.

Freedom To Farm Act

A law passed in 1996 in the United States designed to phase out certain agricultural subsidies and give farmers more planting flexibility.

Transition Payments

Payments made to individuals or companies to facilitate adjustment to a new economic condition or policy.

Price Supports

Government interventions or policies to maintain the price of a commodity at a certain level to protect producers from price fluctuations.