Darlene Runs a Fruit and Vegetable Stand in a Medium-Sized

question 30

Multiple Choice

Darlene runs a fruit and vegetable stand in a medium-sized community where there are many such stands. Her weekly total revenue equals $3500. Her weekly total cost of running the stand equals $3500, consisting of $2500 of variable costs and $1000 of fixed costs. What would an economist likely advise Darlene to do?

• A) Shut down as quickly as possible, because the stand is generating losses.
• B) Keep the stand open for a while longer, because she is covering all of her variable costs and some of her fixed costs.
• C) Keep the stand open, because it is generating a normal profit.
• D) Keep the stand open for a while longer, because she is covering all of her fixed costs and some of her variable costs.

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Definitions:

Passive Voice

A grammatical construction where the subject of the sentence is acted upon by the verb, often leading to less direct or weaker statements.

Long Run-On Sentences

Sentence structures that are overly long and improperly constructed, often lacking proper punctuation and clarity.

Fragments

Small, broken, or incomplete parts of a larger whole, especially in the context of text or data segments in research.

Vague Referrals

are indistinct or unclear references or recommendations that lack specificity or detail.