A firm produces 1000 units per week. It hires 10 full-time workers (40 hours/week each) at an hourly wage of $20 . Raw materials costs $5 per unit. Rent for the factory is $1,500 per week. What are the overall costs for the week?
a. total variable cost is $5,000 . total fixed cost is $1,500; total cost is $6,500
b. total variable cost is $13,000 . total fixed cost is $9,500; total cost is $22,500
c. total variable cost is $13,000 . total fixed cost is $1,500; total cost is $14,500
d. total variable cost is $5,000 . total fixed cost is $9,500; total cost is $14,500
c
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If the Fed were to attempt to increase the money supply, it would most likely do so
A) by manipulating the discount rate. B) by manipulating the required reserve ratio. C) by altering the amount of gold held in Fort Knox. D) by engaging in open market operations.
On a graph, the area below a demand curve and above the price measures
a. producer surplus. b. consumer surplus. c. deadweight loss. d. willingness to pay.