Vipsana's Gyros House sells gyros. The cost of ingredients (pita, meat, spices, etc.) to make a gyro is $2.00. Vipsana pays her employees $60 per day. She also incurs a fixed cost of $120 per day. What is Vipsana's total cost per day when she does not
produce any gyros and does not hire any workers?
A) $0
B) $2
C) $60
D) $120
Answer: D
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________ decreases aggregate supply
A) A rise in the money wage rate B) An increase in potential GDP C) A fall in the money wage rate D) An increase the quantity of capital E) A rise in the price level
Suppose that the price of product X rises by 20 percent and the quantity supplied of X increases by 15 percent. The coefficient of price elasticity of supply for good X is:
A. negative and therefore X is an inferior good. B. positive and therefore X is a normal good. C. less than 1 and therefore supply is inelastic. D. more than 1 and therefore supply is elastic.
A required element for specialization to lead to an increase in the satisfaction of society's wants is:
A. A capitalist economy B. Exchange and trade C. The use of money D. A central plan
The total revenue of Grandma's Fudge Factory is equal to the:
A. average cost times quantity sold. B. elasticity of demand divided by percentage change in quantity. C. price of fudge times quantity sold. D. income minus explicit and implicit costs.