When Pepsi Sells 1,000 Cases of Pepsi,their Cost Per Case

question 308

Multiple Choice

When Pepsi sells 1,000 cases of Pepsi,their cost per case is $0.30.However,when they sell 2,000 cases,their cost per case is $0.22.These costs are considered Pepsi's:

• A)fixed costs.
• B)variable costs.
• C)marginal costs.
• D)administrative costs.

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Definitions:

Club Membership

Club membership describes an individual's subscription or affiliation with a private group that offers access to exclusive resources or activities.

Price of Y

The market value or cost assigned to good Y, influenced by factors like supply, demand, and market conditions.

Discount

A reduction from the full price or standard cost of a good or service, often used to stimulate sales or clear inventory.

Equivalent Variation

An economic concept measuring the change in income needed to reach an individual's utility level before a price change, holding prices constant.