Raymond Estimates That the Fixed Costs Associated with Opening a New

question 29

Multiple Choice

Raymond estimates that the fixed costs associated with opening a new bank branch are $500 ,000.He expects the branch to attract 1,000 new customer accounts in the first year,each of which will cost $50 per year to service.He also expects to generate $100,000 per year in revenue.For Raymond,the total cost of opening the new branch and remaining open for one year will be

• A) $500
• ,000.
• B) $550
• ,000.
• C) $650
• ,000.
• D) $450
• ,000.
• E) $605
• ,000.

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Definitions:

Potty-Trained

The process by which a young child learns to use the toilet for urination and defecation independently.

Classical Conditioning

A learning process that occurs when two stimuli are repeatedly paired: a response that is at first elicited by the second stimulus is eventually elicited by the first stimulus alone.

Feed Himself

The act of an individual eating or consuming food without assistance from others.

Extinction

In behavioral psychology, the process by which a previously learned response decreases in frequency or disappears when reinforcement is withheld.