A Wholesale Food Retailer Is Offered $14 Per Two-Layer Carton

question 35

Multiple Choice

A wholesale food retailer is offered $14 per two-layer carton for 5000 cartons of peaches.The wholesaler can buy peaches from their growers at $12.50 per carton.Shipping costs $1.50 per carton,for the first 1000 cartons,and $1.00 per carton for every carton over that.Will taking this opportunity increase the value of the wholesale food retailer?

• A)No.The costs are $1200 more than the benefits.
• B)No.The costs and the benefits are the same.
• C)Yes.The costs are $1000 less than the benefits.
• D)Yes.The costs are $2000 less than the benefits.

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Definitions:

Demand Curves

Demand curves graphically demonstrate how the quantity demanded of a commodity varies with its price, highlighting the inverse relationship between prices and demand quantities.

Substitute Good

A product or service that satisfies the need of a consumer that another product or service fulfills.

Important Resource

A crucial element or input required for the production process or societal functioning.

Immigration

The action of coming to live permanently in a foreign country.