Westerlund Owns a Picture-Framing Shop,The Caplow Co

question 3

Multiple Choice

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 costs for a typical framed picture,which consists of $5 for glass,$2 for matting,$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 there is no change in price or the quantity demanded,if Westerlund wants to increase her advertising expenses to a total of $1,000 (a $500 increase) ,this would cause total costs to __________ and the break-even quantity to __________.

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

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Definitions:

Composite Volcano

A common type of volcano constructed of alternating layers of lava, pyroclastic deposits, and mass-wasting deposits, including mudflows; synonym: stratovolcano.

Pyroclastic Deposits

Accumulations of volcanic material ejected during an eruption, including ash, bombs, and blocks.

Composite Volcano

A volcano built by both lava flows and pyroclastic eruptions, typically featuring steep profiles and explosive activity.

Shield Volcano

A broad, domed volcano with gently sloping sides, primarily formed by the eruption of low-viscosity lava.