Suppose Bev's Bags makes two kinds of handbags-large and small. Bev rents an industrial space where she keeps the fabric, the industrial sewing machine, her measuring board and cutting shears, extra needles, thread and buttons, and labels. Bev can produce three bags an hour, regardless of the size of bag. Which of the following would be considered a fixed cost of this company?
A. The sewing thread
B. The fabric
C. The rent Bev pays
D. None of these would be considered a fixed cost.
Answer: C
You might also like to view...
In the United States, Texas ranks number one in the amount of installed megawatts for wind power generation and Florida ranks number one in the number of beach vacations. These facts point out that
A) Texas has a comparative advantage in wind power generation. B) Texas definitely has an absolute advantage in wind power generation. C) Florida should produce more wind energy. D) Florida can produce wind energy at a lower opportunity cost than can Texas.
Restricting imports tends to
A) shift the demand curve for the product to the left. B) shift the demand curve for the product to the right. C) change the shape of the supply curve. D) increase the quantity supplied of a product.
Define the following terms and explain their importance to the study of economics. a. monopolistic competition b. oligopoly c. cartel d. oligopolistic interdependence
What will be an ideal response?
Which of the following is not always correct for a closed economy?
a. National saving equals private saving plus public saving. b. Net exports equal zero. c. Real GDP measures both income and expenditures. d. Private saving equals investment.