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NEW QUESTION 21
A DVD manufacturer is considering shutting down its production facility and only selling its movies through digital downloads. The company has signed a contract to pay $3,000 a month for its production facility for the next three years. If the company continues to sell its movies as DVDs, it is projected to earn $8,500 in revenue and spend $3,500 in variable costs each month. Variable costs for the digital downloads are 0. Under what circumstances should the company switch to selling digital downloads?

• A. If the demand for movies is expected to decrease in the future
• B. If the projected revenue from the digital downloads is more than $5,000 per month
• C. If each digital download would earn more profits than each DVD sale
• D. If the projected revenue from the digital downloads is more than $2,000 per month

Answer: B

NEW QUESTION 22
An individual surveys 15 people under the age of 40 and asks for their current salary. The resulting histogram is shown below.

How many of those surveyed earn less than or equal to $50,000 a year?

• A. 0
• B. 1
• C. 2
• D. 3

Answer: D

NEW QUESTION 23
A company designs and sells premium jewelry primarily to wealthy professionals living in urban centers. This market is very competitive, and consumers often develop strong brand loyalty. The CEO of the company wants to increase sales. What is the MOST effective advertising strategy?

• A. Promoting jewelry without mentioning brand names
• B. Emphasizing customers' positive in-store experience at the company
• C. Emphasizing the flaws of one of the company's competitors
• D. Promoting a new line of jewelry that imitates competitors' offerings

Answer: B

NEW QUESTION 24
An earthquake destroys a major manufacturing plant that produces sneakers. The manufacturing plant for rubber, a complementary good to sneakers, is unaffected by the earthquake. What is the result?

• A. The equilibrium quantity of sneakers decreases, and the equilibrium quantity of rubber increases.
• B. The equilibrium quantity of sneakers increases, and the equilibrium quantity of rubber decreases.
• C. The equilibrium quantity for both products remains the same.
• D. The equilibrium quantity for both products decreases.

Answer: D

NEW QUESTION 25
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