Assuming a Constant Mix of 3 Units of X for Every

question 2

Multiple Choice

Assuming a constant mix of 3 units of X for every 1 unit of Y, a selling price of $18 for X and $24 for Y, variable costs per unit of $12 for X and $14 for Y, and total fixed costs of $89,600, the break-even point in units would be

• A) 9,600 units of X and 3,200 units of Y.
• B) 2,400 units of X and 800 units of Y.
• C) 3,200 units of X and 9,600 units of Y.
• D) 1,867 units of X and 622 units of Y.

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Definitions:

Tax Revenues

The income that is collected by governments through the imposition of various taxes, which is used to fund public services and policies.

Deadweight Losses

The loss of economic efficiency that can occur when the equilibrium for a good or a service is not achieved, leading to a net loss in societal welfare.

Incentives

Motivational factors or mechanisms that encourage individuals or groups to behave in a certain way or to take specific actions.

Lump-Sum Taxes

Taxes that are the same amount for everyone, regardless of the taxpayer’s income level or ability to pay.