Refer to Scenario 9.6 below to answer the question(s) that follow. SCENARIO 9.6: Celeste borrowed $40,000 from her brother to open a car wash. She pays her brother a 5% yearly return on the money he lent her. Her other yearly fixed costs equal $18,000. Her variable costs equal $40,000. In her first year, Amy sold 40,000 car washes at a price of $2.50 per car wash.Refer to Scenario 9.6. Celeste's total fixed costs equal
A. $2,000.
B. $18,000.
C. $20,000.
D. $22,000.
Answer: C
You might also like to view...
A firm will shut down in the short run if
A. TR ? TC > TFC. B. TR + TC > TFC. C. TC ? TR > TFC. D. TFC + TVC > TR.
Alice has spent all of her income on ten different goods, and knows that the marginal utilities per dollar spent on the ten goods are equal. Which of the following statements is correct?
a. She could possibly increase her total utility by redistributing her income among the ten items. b. She has violated the assumption of rationality. c. The law of diminishing marginal utility does not apply to her. d. Any reallocation of income among the ten items will reduce her total utility. e. She must be at a point inside of her budget line.
The Board of Governors of the Federal Reserve is comprised of
A) seven persons, each appointed to a seven-year term. B) seven persons, each appointed to a fourteen-year term. C) fourteen persons, each appointed to a seven-year term. D) twelve persons, each appointed to a seven-year term. E) twelve persons, each appointed to a fourteen-year term.
The Taylor rule is consistent with the Fed's dual mandate of
A) stable exchange rates and price stability. B) price stability and maximum sustainable employment. C) financial market stability and stable exchange rates. D) maximum sustainable employment and financial market stability.