The table above gives a firm's total product schedule. Suppose labor is the only variable factor of production. The price of labor is $500 per week and total fixed costs are $600 per week. What is the total cost of producing 70 units?
A) $1,700
B) $1,900
C) $2,100
D) $2,300
C
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A business produces 4,00 . units per month which he sells at $20/unit. Costs include: $10,00 . on raw materials, $15,00 . on operators and $10,00 . on sales people. In order to break even the fixed costs will have to be:
a. $35,000 b. $40,000 c. $45,000 d. $50,000
Sam has $200 a month to spend on either tanning sessions or rounds of golf. Tanning sessions are $20 each, and a round of golf is $40. Sam currently consumes six tanning sessions and two rounds of golf. Both tanning and golf are normal goods. If the price of a round of golf drops to $20, the income and substitution effects will cause Sam's consumption of tanning sessions:
A. to increase, since both effects predict an increase. B. to decrease, since both effects predict a decrease. C. to change, but the direction is dependent upon which effect is stronger. D. It is impossible to say what will happen without more information.
In the short-run macro model, what is the relationship between income and government purchases?
a. It is positive and stable. b. It is positive but unstable. c. It is negative and stable. d. It is negative but unstable. e. There is no relationship between the two variables.
Spot exchange can be inefficient in the presence of:
A. a complex contracting environment. B. opportunism. C. spot checks. D. None of the statements is correct.