Furr Friends Sells Kits for Making Personalized Grave Markers for Pets.The

question 97

Multiple Choice

Furr Friends sells kits for making personalized grave markers for pets.The company sells each kit for $25.The average variable cost for each kit is $10,and the total annual fixed costs for plant operation are $45,000.What is the break-even point in units?

• A) 1,800
• B) 2,500
• C) 3,000
• D) 4,500
• E) 5,000

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Definitions:

Public Good

Goods that are non-excludable and non-rivalrous, meaning that individuals cannot be effectively excluded from use and where use by one individual does not reduce availability to others.

Nonexcludable

Nonexcludable goods are those that cannot feasibly or reasonably be kept from individuals who do not pay for them, one of the characteristics of public goods.

Nonrival

A characteristic of a good whereby one person's consumption does not prevent or decrease the ability of others to enjoy it as well.

Private Good

A product or service that is consumed by a single individual or household and cannot be used or consumed by others simultaneously.