The Neighborhood Ice Cream Shop Finds That When It Charges

question 102

Multiple Choice

The neighborhood ice cream shop finds that when it charges $3 per ice cream cone, its total revenues are $90,000. It has total variable costs of $30,000 and total fixed costs of $40,000. From this we can infer the:

• A) shop sells 10,000 ice cream cones.
• B) price is less than average total cost.
• C) economic profits are $20,000.
• D) shop will be closed in the long run.

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Negotiation outcomes that involve creative solutions allowing all parties to achieve their objectives, often leading to mutual benefits.