Suppose the Fixed Cost of Christmas Trees Business Is $7,000

question 32

Multiple Choice

Suppose the fixed cost of Christmas trees business is $7,000 and sunk.The variable cost for each tree is $20.According to the forecast,the market price for Christmas trees is $25 each and the owner could sell 1000 trees at most each year.The owner

• A)should shut down the business.
• B)should keep operating.
• C)should sell less.
• D)None of the above.

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Definitions:

Model Of Attention

Conceptual frameworks that describe how humans focus cognitive resources on specific stimuli while ignoring others.

Unattended Stream

Information or sensory input that is not actively being focused on or processed by the conscious mind.

Attentional Capture

The involuntary redirecting of attention towards a specific stimulus without intentional control.

Attentional Resources

Cognitive capacity or energy available at a given time for processing information and performing tasks.