Suppose You Are the Owner of a Picture Frame Store

question 209

Multiple Choice

Suppose you are the owner of a picture frame store.Let's assume that the average price customers are willing to pay for each picture frame is $120.Also,suppose your fixed costs (FC) total $32,000 (real estate taxes,interest on a bank loan,etc. ) and unit variable cost (UVC) for a picture frame is $40 (labor,glass,frame,and matting) .Figure 13-10 above shows that by selling 200 pictures,your picture frame store will

• A)break even.
• B)earn a profit.
• C)incur a loss.
• D)have no fixed costs.
• E)have no variable costs.

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Definitions:

Infrastructure

The fundamental facilities and systems serving a country, city, or area, including transportation, communication, water, and power systems.

Price Controls

Government-imposed limits on the prices that can be charged for goods and services in a market, aiming to keep prices within a certain range.

Exports

Goods or services sent from one country to another for sale or trade.

Marketing Boards

Organizations that control the supply or pricing of certain agricultural products in various countries.