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

question 252

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 labor 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.Assuming everything else stays the same, if Jane Westerlund increased the average price charged for a framed picture, in a break-even chart this would cause the slope of the total revenue curve to __________ and the break-even quantity to __________.

• A)increase; increase
• B)increase; decrease
• C)decrease; decrease
• D)decrease; increase
• E)stay the same; increase

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Definitions:

England

A country that is part of the United Kingdom, known for its rich history, diverse culture, and significant global influence.

Mens Rea

A legal term referring to the mental state of a person while committing a crime, showing intention or knowledge of wrongdoing.

Conviction

A firmly held belief or opinion, or the formal declaration that someone is guilty of a criminal offense by the verdict of a jury or the decision of a judge in a court of law.

Psychological Concepts

Fundamental ideas or theories in psychology that describe, explain, and predict aspects of human behavior and mental processes.