Many Theaters Sell Empty Seats at a Deep Discount Just

question 58

Multiple Choice

Many theaters sell empty seats at a deep discount just before show time. What economic concept is displayed by this behavior?

• A) Consumer demand
• B) Sunk costs
• C) Price optimization
• D) Thinking at the margin

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Definitions:

Auxiliary Petty Cash Record

A detailed ledger used to track the small cash expenditures handled through a petty cash fund.

Office Expense

Costs associated with the day-to-day operations of an office, including supplies, utilities, and administrative salaries.

Insurance Expense

The cost associated with purchasing insurance policies for the business, considered an operating expense.

Postage Expense

The cost incurred by a business to send mail or packages, recorded as an expense in the business's financial statements.