If an Amusement Park That Is Highly Profitable During the Summer

question 253

Multiple Choice

If an amusement park that is highly profitable during the summer months is unable to cover its variable costs during the winter months, it should

• A) raise its prices during the winter months.
• B) lower its prices during the summer months.
• C) operate during the summer but shut down during the winter months.
• D) operate during all months of the year as long as its profits during the summer exceed its losses during the winter.

---

Definitions:

Gramm-Leach-Bliley Financial Modernization Act

A U.S. federal law enacted in 1999 to control the ways that financial institutions deal with the private information of individuals.

Dodd-Frank Act

A federal law passed in 2010 aimed at reducing risks in the U.S. financial system through comprehensive regulation of financial markets and institutions.

Federal Trade Commission

A U.S. government agency established to protect consumers and promote competition, enforcing antitrust and consumer protection laws.

Corrective Advertising

Advertising campaigns undertaken by a company to correct previous misleading or false advertisements, often as required by legal proceedings or regulatory bodies.