Alicia spends $20,000 on remodeling a storefront that she then opens as a flower shop. Her business has not been very successful, and she needs an additional $8,000 to keep the flower shop. Which of the following is true?
A. The $8,000 Alicia needs to keep the flower shop open represents her total fixed costs.
B. The $20,000 Alicia spent on remodeling represents a part of the total variable cost of her business.
C. The $20,000 Alicia spent on remodeling is a fixed cost of her business.
D. The $8,000 represents her marginal costs of production.
Answer: C
You might also like to view...
Utility is the set of numerical values that
A) yields an absolute level of pleasure from a bundle of goods. B) reflects the relative ranking of various bundles of goods. C) describes how much more a consumer prefers one bundle to another. D) yields a cardinal ranking of bundles.
What assumptions are necessary to argue that the quantity equation implies that increases in the money supply lead to proportional changes in the price level?
If net investment in 2016 is $550 billion and gross investment in 2016 is $900 billion, depreciation in 2016 is
A. $900 billion. B. $550 billion. C. $450 billion. D. $350 billion.
In the above figure, if the minimum wage is set at $2 per hour, what quantity of labor is employed?
A) 100 million hours B) 200 million hours C) 300 million hours D) 400 million hours