Max Shreck, an accountant, quit his $80,000-a-year job and bought an existing tattoo parlor from its previous owner, Sylvia Sidney. The lease has five years remaining and requires a monthly payment of $4,000. The lease
A) is a fixed cost of operating the tattoo parlor.
B) is a variable cost of operating the tattoo parlor.
C) is an implicit cost of operating the tattoo parlor.
D) is part of the marginal cost of operating the tattoo parlor.
Answer: A
You might also like to view...
List and explain the three subgroups of the Federal Reserve System
What will be an ideal response?
Entrepreneurship is
a. restricted to perfect competition. b. occurs only in well-functioning markets. c. the process of planting new crops. d. the process of taking business risks.
Unemployment compensation is an example of a(n) ______.
a. automatic stabilizer b. index c. sacrifice ratio d. positive supply shock
The value of marginal product of labor is the ________ when one additional unit of a labor is employed, all other things remaining the same
A) change in marginal revenue B) change in marginal product C) change in total revenue D) total revenue