A business incurs the following costs per unit: Labor $5/unit; Materials $3/unit and rent $5000/month. If the firm produces 1000 units a month, the total fixed costs equals
a. $5,000
b. $8,000
c. $13,000
d. $3,000
a
You might also like to view...
During a period of hyperinflation, as households and firms avoid holding money,
A) potential GDP increases. B) long term savings accounts become more popular. C) barter becomes more common. D) the costs of inflation decrease. E) capital investment increases.
If the overall price level decreases, then the aggregate demand curve will shift to the right
a. True b. False Indicate whether the statement is true or false
Cartels are difficult to maintain because a. the monopoly output is very difficult to determine
b. the number of firms is always large. c. costs to the firms in a cartel are continually rising. d. each firm has an incentive to deviate from its agreed output level.
(amounts in billions of dollars)
According to the above table, Gross Domestic Product as calculated by the expenditure approach is
A. $13,384 billion. B. $13,617 billion. C. $13,278 billion. D. $14,337 billion.