A Small Business Recaps and Sells Tires

question 244

Multiple Choice

A small business recaps and sells tires. The business has a revenue function and a cost function , where x represents the number of sets of four tires recapped and sold. Find the number of sets of recaps that must be sold to break even. ​

• A) 100
• B) 500
• C) 15
• D) 300
• E) 80

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Definitions:

Opportunity Costs

The cost of missing out on the top alternative by deciding on another option.

Scarce Resources

Natural, human, and artificial resources that are limited in supply and cannot satisfy all human wants and needs.

Secondary Effects

The unintended consequences of economic actions, which can occur as indirect results of a policy or event.

Economic Actions

Decisions or behaviors taken by individuals, firms, or governments that affect the production, distribution, and consumption of goods and services.