Suppose You Camped Out in Front of an Electronics Store

question 24

Multiple Choice

Suppose you camped out in front of an electronics store to be one of the 200 lucky people able to purchase the latest gaming system. You bought the system for $350. Two weeks later you see that the same system can be sold on e-Bay for $600, so you sell your system. Your market role is as:

• A)a consumer in both of these markets.
• B)a consumer at the electronics store and as a seller on e-Bay.
• C)a consumer at the electronics store; the e-Bay transaction did not occur in a market.
• D)a seller in both of these markets.

---

Definitions:

Fixed Costs

Fixed costs are business expenses that remain constant regardless of the level of production or sales.

Variable Costs

Costs that vary directly with the level of production or output.

Fixed Costs

Expenses that do not change with the level of goods or services produced over a short period.

Space Rental

The act of obtaining the use of a physical location or property for a specified period of time in exchange for payment.