In the Mid-1990s, Cattle Ranchers in the United States Kept

question 216

Multiple Choice

In the mid-1990s, cattle ranchers in the United States kept raising cattle even though prices were at a ten-year low and below average total cost.What is the likely explanation for this?

• A)Continuing to operate resulted in smaller losses than would have been incurred by shutting down.
• B)The ranchers were hoping to receive government subsidies.
• C)The exit costs were too high.
• D)Cattle is an important source of protein and its production is essential for the United States.

Recognize the similarities and differences among cultures and the fundamental human attributes.

Grasp the evolutionary perspective in psychology, particularly how adaptive behaviors increase survival and reproduction.

Identify the focus of cognitive psychology and its key areas of study.

Comprehend the principle of natural selection and its application in psychological processes.

---

Definitions:

Fixed Selling Expense

Costs associated with the selling process that do not vary with the level of sales, such as salaries of sales personnel and rent for sales space.

Variable Administrative Expense

Indirect costs that change in proportion with the level of a company’s production or sales activities.

Fixed Administrative Expense

Expenses that do not change with the level of production or sales over a certain period, related to the administration of a business.

Contribution Format

An income statement format that separates fixed and variable costs to show the contribution margin.