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:

One-On-One Interaction

Direct, personal communication between two individuals, often used in marketing to tailor the experience to the customer's specific needs or preferences.

Consumer Participants

Individuals who actively engage in the marketplace by purchasing, using, and providing feedback on goods and services.

Focus Group Research

A qualitative research method involving guided group discussions used to gather participants' attitudes, perceptions, and responses toward a specific topic or product.

Consumer Participants

Individuals who actively engage in the marketplace by purchasing or using goods and services.