Answer the Following Questions Using the Information Below

question 121

Multiple Choice

Answer the following questions using the information below:
Campesi intends to sell his customers a special round-trip airline ticket package.He is able to purchase the package from the airline carrier for $250 each.The round-trip tickets will be sold for $300 each and the airline intends to reimburse Campesi for any unsold ticket packages.Fixed costs include $7500 in advertising costs.
-How many ticket packages will Campesi need to sell to break even?

• A)65 packages
• B)100 packages
• C)150 packages
• D)250 packages

---

Definitions:

Average Product

The output produced per unit of input, calculated by dividing total output by the number of units of a specific input.

Marginal Product

The boost in output stemming from an increment in input by one unit.

Wage

The payment received by workers for their labor, typically expressed as an amount per hour or per year.

Factor Markets

Markets where services of the factors of production (labor, capital, land) are bought and sold.