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 fixed cost for this company?
A. Employee wages
B. The cost of rope
C. The packaging material
D. None of these would be considered a fixed cost.
D. None of these would be considered a fixed cost.
You might also like to view...
The demand for apple pies is perfectly elastic. If the government taxes apple pies at $1 a pie, then
A) the seller pays the entire tax. B) the buyer pays the entire tax. C) the seller and the buyer split the tax evenly. D) the seller and the buyer split the tax but the seller pays more. E) who pays the tax depends on whether the government imposes the tax on pie buyers or on pie sellers.
Adoption of a currency board
A) is one method for achieving a soft peg policy. B) places responsibility for exchange rate management in the hands of an agency that is independent of political influences. C) mandates the use of currency in all domestic transactions. D) requires that a centralized institution holds interest-bearing assets denominated in the currency against which the nominal exchange rate is being fixed.
The above figure depicts the Edgeworth box for two individuals, Al and Bruce. Part of the contract curve can be found by connecting points
A) a and b. B) a and c. C) b and d. D) c and d.
The quantity demanded of baseball bats increased from 1,000 units to 1,100 units when its price fell from $20 per bat to $18 per bat. The price elasticity of demand for baseball bats is:
a. 1.43. b. 0.99. c. 1.73. d. 2.44.