Chulo Ibsen Makes and Sells Hand-Forged Wrought Iron Fireplace Screens

question 168

Multiple Choice

Chulo Ibsen makes and sells hand-forged wrought iron fireplace screens for $125 each.He has determined that his fixed costs are $8,000,and his variable costs per firescreen are $45.
-Refer to Fireplace Screens.What is Ibsen's break-even point in units?

• A) 47
• B) 100
• C) 50
• D) 64

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Definitions:

Not Excludable

A characteristic of certain goods where it is not feasible to prevent individuals from consuming the good, such as public parks.

Not Rival

Refers to a good's characteristic where one person's consumption does not reduce the availability of the good for consumption by others.

Common Resources

Natural or man-made resources that are not owned by anyone, are available for use by more than one person, and can be depleted.

Public Good

A product that one individual can consume without reducing its availability to another individual and from which no one is excluded.