Jane Westerlund Owns a Picture-Framing Shop,The Caplow Co

question 216

Multiple Choice

Jane Westerlund owns a picture-framing shop,The Caplow Co.The average price she receives for a picture she frames for a customer is $120.This price must cover her average costs for a typical framed picture of $5 for glass,$2 for matting,and $13 for the frame,and $30 for the labour involved.She must also cover monthly expenses of $1,000 for rent and insurance,$200 for heat and electricity,$500 for advertising,and $3,500 for her salary.Westerlund is considering buying an automatic mat-cutting machine in order to reduce the number of hours of direct labour required to produce a framed picture.In considering this purchase,she should recognize it will _____ Caplow's variable cost and _____ Caplow's fixed cost.

• A)decrease; increase
• B)decrease; decrease
• C)increase; decrease
• D)increase; increase

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Definitions:

MRI

Magnetic Resonance Imaging, a medical imaging technique used to visualize internal structures of the body in detail.

Localization Of Function

Specialization of particular brain areas for particular functions.

Specialization

The process of focusing on a specific area of study or work, developing expertise in a particular subject or skill.

Plasticity

The brain’s ability to change and adapt in response to experience, through neurogenesis, or by reorganizing or growing new neural connections.