Multiple Choice
Use the information below to answer the following questions.
Fact 11.3.1 A Pepsi, A Business Decision
PepsiCo has done a deal with 300 small Mexican farmers close to their two factories to buy corn at a guaranteed price. PepsiCo saves transportation costs and the use of local farms assures it access to the type of corn best suited to its products and processes. "That gives us great leverage because corn prices don't fluctuate so much, but transportation costs do," said Pedro Padierna, president of PepsiCo in Mexico.
Source: The New York Times, February 21, 2011
-Refer to Fact 11.3.1. Fluctuations in the price of corn and in transportation costs shift all of the following except the
A) average variable cost, marginal cost, and average total cost curves.
B) average fixed cost and total fixed cost curves.
C) total cost curve.
D) total variable cost curve.
E) average fixed cost, marginal cost, and total fixed cost curves.
Correct Answer:

Verified
Correct Answer:
Verified
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