A firm produces 500 units per week. It hires 20 full-time workers (40 hours/week) at an hourly wage of $15 . Raw materials are ordered weekly and they costs $10 for every unit produced. The weekly cost of the rent payment for the factory is $2,250 . How do the overall costs breakdown?
a. total variable cost is $17,000 . total fixed cost is $2,250; total cost is $19,250
b. total variable cost is $5,000 . total fixed cost is $2,250; total cost is $7,250
c. total variable cost is $5,000 . total fixed cost is $14,250; total cost is $19.250
d. total variable cost is $12,000 . total fixed cost is $7,250; total cost is $19,250
a
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The budget constraint for a consumer who only buys apples (
A) and bananas (B) is PAA + PBB = I where consumer income is I, the price of apples is PA, and the price of bananas is PB. To plot this budget constraint in a figure with apples on the horizontal axis, we should use a budget line represented by the slope-intercept equation: A) A = -I/PA + (PB/PA)B B) A = I/PA - (PB/PA)B C) B = -I/PB + (PA/PB)A D) B = I/PB - (PA/PB)A