Bill is an accountant for a small machine shop. His boss has asked him to calculate the shop's total fixed cost. Which method will get Bill the correct answer?
A. subtracting total variable costs from total revenue
B. calculating the product of average total cost and quantity
C. subtracting the average variable cost from the total cost
D. subtracting the total variable cost from the total cost
Answer: D
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Consider two situations: In situation A the production of widgets is monopolized by a single firm. In situation B the production of widgets is perfectly competitive. In both situations the supply of labor to widget makers is infinitely elastic at a wage of w. Which of the following statements is true?
a. The marginal value product of labor will be the same in the two cases. b. The marginal value product of labor is higher in case B than in case A. c. The marginal value product of labor is higher in case A than in case B. d. From the information given it is not possible to make a definite statement about the marginal value product of labor.
Chickens are not endangered because
A) there are clear property rights to them. B) government regulates chicken processors. C) there are positive externalities. D) they are free and not owned by anyone.