A firm produces 100 . units per week. It hires 10 full-time workers (40 hours/week) at an hourly wage of $20 . Raw materials are ordered weekly and they costs $5 for every unit produced. The weekly cost of the rent payment for the factory is $1,500 . How do the overall costs breakdown for the week?
a. total variable cost is $5,000 . total fixed cost is $1,500 . total cost is $6,500
b. total variable cost is $5,000 . total fixed cost is $9,500 . total cost is $14,500
c. total variable cost is $13,000 . total fixed cost is $1,500 . total cost is $14,500
d. total variable cost is $13,000 . total fixed cost is $9,500 . total cost is $22,500
c
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Answer the following statement true (T) or false (F)
Consider a short-run equilibrium in a perfectly competitive market. Suppose that the firms' average total cost and marginal cost schedules differ. In the short run,
A) all firms in the market must be able to make an economic profit. B) all firms produce equal amounts of output. C) some firms might incur an economic loss, but still produce output. D) some firms might make an economic profit and, as a result, shut down. E) all firms in the market must be able to make either positive or zero economic profit.
If you can't prevent people from consuming something, then:
A. they have little reason to pay for using it. B. the good is not excludable. C. individuals will likely use it for free. D. All of these statements are true.
When we consider our savings, interest rates ________ and inflation rates ________ the value.
A. have no real effect; decrease B. increase; increase C. increase; decrease D. decrease; increase