Calvin Is a College Student Who Identified a Campus Need

question 23

Multiple Choice

Calvin is a college student who identified a campus need for transportation to and from a nearby store. He owns a van with four passenger seats and pays $50 of insurance per month. Calvin calculated his cost of transporting other students to be $2.50 per round trip, assuming he has a full van. Which statement is correct, assuming Calvin has a full van?
I. Calvin's average variable costs is $15.
II. Calvin's marginal cost is constant at $2.50.
III. Calvin's average variable cost is constant at $2.50.

• A) I only
• B) II and III
• C) II only
• D) I and III

---

Definitions:

Antidepressants

A class of drugs designed to alleviate symptoms of depression by adjusting the chemical balance within the brain to improve mood.

Depression

A common but serious mood disorder that affects how you feel, think, and handle daily activities, leading to emotional and physical problems.

Prozac, Paxil, Zoloft

Brands of selective serotonin reuptake inhibitors (SSRIs) used in the treatment of depression and other mood disorders.

Drug Treatment

The use of medication to manage or cure a disease or condition, or to relieve its symptoms.