Which of the following will decrease the price needed to break even?
a. A decrease in overall fixed but avoidable costs
b. A decrease in the marginal costs
c. An increase in sunk costs
d. Both A&B
d
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Ellie has been working for an engineering firm and earning an annual salary of $80,000 . She decides to open her own engineering business. Her annual expenses will include $15,000 for office rent, $3,000 for equipment rental, $1,000 for supplies, $1,200 for utilities, and a $35,000 salary for a secretary/bookkeeper. Ellie will cover her start-up expenses by cashing in a $20,000 certificate of
deposit on which she was earning annual interest of $500 . Ellie's annual economic costs will equal a. $55,200. b. $75,200. c. $80,500. d. $135,700.
In which industry or sector of the economy is output least likely to be affected by the business cycle?
A. Housing construction B. Automobile production C. Agricultural commodities D. Capital goods production