A business incurs the following costs per unit: Labor $125/unit; Materials $45/unit and rent $250,000/month. If the firm produces 1,000,000 units a month, the total fixed costs equal
a. $250,000
b. $50,000
c. $20,500
d. $30,000
a
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The asset demand for money is related to the function of money called
A) medium of exchange. B) standard of deferred payment. C) store of value. D) unit of account.
If a firm has no ______ costs, then the profit from shutting down is zero.
A. fixed B. variable C. opportunity D. sunk
Which barrier to entry into the market is created when firms engage in predatory pricing?
a. Control of a physical resource b. Intimidating potential competitors c. Legal monopoly d. Natural monopoly
Which of the following is a criterion for determining whether a foreign nation is dumping?
a. The good is not produced at home. b. The good is selling below the price in the exporting nation. c. The good is priced below average total cost. d. The good is selling below the price in the exporting nation or is priced below average total cost.