Jerry's Ice-Cream Parlor Is Hosting Andrew's Birthday Party in One

question 181

Multiple Choice

Jerry's ice-cream parlor is hosting Andrew's birthday party in one week.Overall,25 to 30 people will attend the party and Andrew's costs are as follows: $200 for rent,$150 for the cake,$3 per person for customized invitations,$15 per person for the meal,$50 for decorations,and $8 per person for party favors.For simplicity,assume that Andrew is considered one of the guests and he receives an invitation too.What happens with the average fixed cost when the number of guests increases from 25 to 30?

• A) decreases from $42 to $39.33
• B) decreases from $16 to $13.33
• C) increases from $16 to $42
• D) increases from $3 to $5
• E) stays the same

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Definitions:

Free Labor

Describes a labor system where workers are not coerced into working through slavery or indenture but rather work for wages and can leave their employment freely.

Working for Wages

The practice of performing labor in exchange for a predetermined payment, typically based on hours worked or tasks completed.

No Wages

A situation where labor is performed without the compensation of money; often associated with slavery, involuntary servitude, or unfair labor practices.

Tax-Free Wages

Refers to income earned that is not subject to income tax by the government.