The Jeans Store Sells 7 Pairs of Jeans Per Day

question 50

Multiple Choice

The Jeans Store sells 7 pairs of jeans per day when it charges $100 per pair.It sells 8 pairs of jeans per day at a price of $90 per pair.What is the marginal revenue of the eighth pair of jeans?

• A)$20.
• B)$90.
• C)$100.
• D)$700.

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Definitions:

Capital Lease

A lease agreement that grants the lessee ownership rights of the asset at the end of the lease term.

Gross Investment

The total amount spent on acquiring new assets and maintaining or upgrading existing ones, without deducting for depreciation.

Lessor's Balance Sheet

A financial statement detailing the assets, liabilities, and equity of a lessor under lease transactions.

Current Asset

An asset that is expected to be converted into cash, sold, or consumed within one year or within the business's normal operating cycle.