AFB Systems Is Considering a New Marketing Campaign That Will

question 123

Multiple Choice

AFB Systems is considering a new marketing campaign that will require the addition of a new computer programmer and new software.The programmer will occupy an office in AFB's current building and will be paid $8,000 per month.The software license costs $1,000 per month.The rent for the building is $4,000 per month.AFB's computer system is always on,so running the new software will not change the current monthly electric bill of $900.The incremental expenses for the new marketing campaign are

• A) $13,900 per month.
• B) $9,000 per month.
• C) $13,000 per month.
• D) $8,000 per month.

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Definitions:

MPs

Abbreviation for Members of Parliament, who are elected to represent constituencies in the legislative body of a country.

Profit-Maximizing Equilibrium

The point at which a firm achieves the highest possible profit, where marginal cost equals marginal revenue.

Least Costly Combination

An economic principle that firms use to minimize costs while combining different factors of production to produce a given output.

Maximizing Profits

The goal of businesses to make the highest possible profit, often by increasing revenue, reducing costs, or both.