Dana spends $10,000 on remodeling a storefront that she then opens as a shoe store. The business has not been very successful, and she needs an additional $3,000 to keep the shoe store open. Which of the following is true?

A. The $3,000 represents her marginal costs of production.
B. The $3,000 Dana needs to keep the deli open represents her total fixed costs.
C. The $10,000 Dana spent on remodeling represents a part of the total variable cost of her business.
D. The $10,000 Dana spent on remodeling is a fixed cost of her business.

Answer: D

Economics

You might also like to view...

Is every product produced in the United States included in U.S. gross domestic product?

What will be an ideal response?

Economics

The J-curve illustrates the effects of

A) changes in Y on NX. B) changes in Y on NX. C) changes in the real exchange rate on NX. D) changes in Y on imports.

Economics