At a firm's current output level of 200 units per week, it has 10 employees at a weekly wage of $500 each. Raw materials, which are ordered and delivered daily, cost $1,000 per week. The weekly cost of the firm's capital is $1,250 . Which of the following statements is correct?
a. Total variable cost is $5,000 . total fixed cost is $2,250; total cost is $7,250.
b. Total variable cost is $6,000 . total fixed cost is $1,250; total cost is $7,250.
c. Total variable cost is $1,250; total fixed cost is $6,000 . total cost is $7,250.
d. Total variable cost is $2,250; total fixed cost is $500; total cost is $2,750.
e. Total variable cost is $1,500; total fixed cost is $1,250; total cost is $2,750.
B
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a. True b. False Indicate whether the statement is true or false
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A. the two goods are perfect substitutes.
B. there are no empty cells.
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