How Many Units Would Have to Be Sold to Yield

question 84

Multiple Choice

How many units would have to be sold to yield a target income of $11,000 assuming variable costs are $30 per unit, total fixed costs are $1,000, and the unit selling price is $40?

• A)1,200 units
• B)1,100 units
• C)1,000 units
• D)900 units
• E)300 units

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Definitions:

Artificially Scarce

A situation where the supply of a good is limited by factors other than its physical scarcity, often due to regulatory or monopolistic practices.

Excludable

Referring to a good, describes the case in which the supplier can prevent those who do not pay from consuming the good.

Nonrival

A property of a good or service where its consumption by one individual does not reduce availability for others, often found in public goods.

Private Good

A good that is both excludable and rivalrous, meaning it can only be used by one person at a time, and access to it can be restricted.