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 variable costs equals
a. $5,000
b. $8,000
c. $13,000
d. $10,000
b
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Which of the following equals the change in an economy's capital stock from one period to the next?
A) wealth B) stock C) gross investment D) depreciation E) net investment
Refer to Scenario 17.4. If the flood control system were in place, the firm could insure against a flood for an annual premium of
A) $5,000. B) $10,000. C) $100,000. D) $200,000. E) $1,000,000.
Suppose that a price ceiling is imposed because the market equilibrium is perceived to be too high. Which of the following rationing schemes makes no sense?
a. rationing fish to those willing to pay the highest price b. rationing fish by means of a lottery c. rationing fish to the elderly first d. rationing fish on a first-come, first-served basis e. rationing fish according to family size
The currency depreciations and the recessions during the Asian crisis did lead to improvement in the Asian countries' current account balances, largely through
A. decreases in imports. B. decreases in capital outflows. C. increases in the rate of inflation in these countries. D. increases in exports.