Jenny's Day Care Is Considering a Merger with Lionel's Diaper

question 2

Multiple Choice

Jenny's Day Care is considering a merger with Lionel's Diaper Manufacturers. Jenny's total operating costs of producing services are $350,000 for sales volume of $1.4 million. Lionel's total operating costs of producing services are $300,000 for a sales volume of $1.3 million. For a sales volume of $2.7 million, calculate the reduction in production costs the merged firms need to experience such that the total average cost (TAC) for the merged firms is equal to 20%.

• A) $129,000
• B) $110,000
• C) $540,000
• D) $103,000

Understand the concept of cultural relativism and ethnocentrism.

Identify the characteristics of material and non-material culture.

Comprehend the role of norms, folkways, and mores in shaping behavior within a culture.

Recognize the significance of symbols and language as part of human culture.

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Definitions:

Minimum Wage Law

Legislation that sets the lowest hourly wage rate that employers can legally pay their workers.

Employment

The condition of having paid work or the process of hiring someone for a job.

Workers

Individuals engaged in any form of employment, contributing labor for the production of goods and services.

Profit-Maximizing Quantity

The level of production at which a company achieves the highest possible profit, determined by the point where marginal cost equals marginal revenue.