Refer to Scenario 9.6 below to answer the question(s) that follow. SCENARIO 9.6: Celeste borrowed $40,000 from her brother to open a car wash. She pays her brother a 5% yearly return on the money he lent her. Her other yearly fixed costs equal $18,000. Her variable costs equal $40,000. In her first year, Amy sold 40,000 car washes at a price of $2.50 per car wash.Refer to Scenario 9.6. Celeste's profit is
A. $0.
B. $20,000.
C. $30,000.
D. $40,000.
Answer: D
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a. True b. False
A budget constraint:
A. shows different bundles of goods that all yield the same total utility. B. shows different bundles of goods that all cost the same amount. C. shows different bundles of goods that all maximize an individual's utility. D. shows how much income is needed to maximize total utility.
In the consumer choice problem, consumers are confronted with which of the following? a. A set of different consumer goods and services to choose from
b. A set of prices for those goods and services. c. A finite budget that constrains the quantity of goods and services that consumers can buy. d. Preferences or utility associated with consuming different quantities of each of the different goods and services. e. All of the above answers are correct.
A productive efficient society
A) produces at a point on its PPF. B) can produce more of one good only by giving up some of another good. C) cannot produce unlimited amounts of a good. D) still has to make choices. E) all of the above