Explain whether each of the following is a fixed cost or a variable cost for Damian Dandridge's tattoo parlor
a. The payment he makes to buy tattoo ink.
b. The wages he pays his employees.
c. The $500-per-month payment he makes to advertise his shop on highway billboards.
d. The lease payment he makes to the landlord who owns the building where his shop is located.
e. The payment he makes on his liability insurance policy.
c, d, and e are fixed costs because they do not change as the quantity of tattoos produced increases. a and b are variable costs because they increase as the quantity of tattoos produced increases. It is important to note that the time period under consideration is important. In the long run, all of these costs are variable.
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Which of the following changes will cause a downward movement along the money demand curve?
a. An increase in the interest rate b. A decrease in the interest rate c. A decrease in real GDP d. An increase in real GDP e. An increase in the price level
The reason that some people make more money than others is explained mainly by
A. training and education. B. intelligence. C. inborn skills or physical attributes. D. all of the choices/statements are true.
During a year of operation, a firm collects $450,000 in revenue and spends $100,000 on labor expense, raw materials, rent, and utilities. The firm's owner has provided $750,000 of her own money form her personal portfolio instead of investing the money and earning a 10% annual rate of return. The firm also operates out of a building they own worth $1,000,000 which the owner inherited 25 years ago.
1.The explicit costs of the firm are $______________. 2. If the owner could earn 15% annually on the money she has invested in the firm, the economic profit of the firm would be ______________ (when revenue is $450,000). 3. The implicit costs are $______________. 4. The firm's accounting profit is $______________. 5. The firm earns an economic profit of $______________.
Assume that a company has several male workers who do not give their full cooperation to female supervisors making them less effective as supervisors. Economists would refer to this type of situation as ____.
A. statistical discrimination B. discrimination by fellow workers C. discrimination by employers D. non-discrimination