A firm produces 100 . units per week. It hires 10 full-time workers (40 hours/week) at an hourly wage of $20 . Raw materials are ordered weekly and they costs $5 for every unit produced. The weekly cost of the rent payment for the factory is $1,500 . How do the overall costs breakdown 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 $5,000 . total fixed cost is $9,500 . total cost is $14,500
c. total variable cost is $13,000 . total fixed cost is $1,500 . total cost is $14,500
d. total variable cost is $13,000 . total fixed cost is $9,500 . total cost is $22,500
c
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The school of thought that assumes that real GDP is determined by aggregate supply, whereas the equilibrium price level is determined by aggregate demand is known as _____
a. neoclassical economics b. classical economics c. new Keynesian economics d. Keynesian economics e. Marxist economics
In a perfectly competitive labor market,
a. some workers may be prevented from leaving the labor market b. workers compete for employment opportunities c. workers usually receive wages that are greater than their marginal revenue product d. firms view all workers as being identical e. there are relatively few sellers of labor services