Suppose Larry's Lariats produces lassos in a factory, and uses nine feet of rope to make each lasso. The rope is put into a machine that automatically cuts it to the right length, then seals the ends to prevent fraying. The rope is then hand tied, dipped, and wound before being placed in a packaging machine to prepare it for retail sale. Which of the following would be considered a variable cost for this company?
A. The cost of the factory
B. Employee wages
C. The rope-cutting machine
D. All of these expenses would be included in variable costs.
B. Employee wages
You might also like to view...
For some investors, derivatives can be attractive financial assets to purchase because
A. these assets can be used to offset the possibility of another risk faced by the investor. B. these assets allow an investor to eliminate the risk that they face entirely. C. they provide high returns with a very small investment. D. they are easier to sell than common stock.
Referring to a production possibilities curve and the goods being compared, depict the economic event. Widespread use of the assembly line revolutionizes U.S. industry in the early 20th century (capital vs. consumer goods).
A. A movement from a point inside the curve to a point on the curve B. A movement from a point on the curve to a point inside the curve C. A shift in the entire curve to the right (outward) D. A shift in the entire curve to the left (inward)
Assume a family that earns $20,000 pays $1,000 in income taxes, while a family that earns $40,000 pays $3,750 in income taxes. In this situation, the income tax system is
A. regressive. B. progressive. C. proportional. D. one of these but we cannot tell which one without more information.
Producer surplus equals
A) total revenue minus total variable cost. B) total revenue minus the sum of all marginal cost. C) profit plus fixed cost. D) All of the above.