(Table: Workers and Output) Use Table: Workers and Output.After graduation,you achieve your dream of opening an art shop that specializes in selling mud statues.You pay $10 per day on a loan from your uncle,regardless of how much you produce.You also pay $10 per day to each of the workers who you hire to make the mud statues.The variable cost of producing 48 statues is:

A) $50.
B) $48.
C) $20.
D) $10.

The variable cost includes the costs that change with the level of output, which in this case is the cost of labor ($10 per worker per day). Since the fixed cost ($10 per day for the loan) does not change with the level of output, it is not included in the variable cost. Without the specific table data, we assume the production of 48 statues requires 5 workers (given the variable cost of $50, which is $10 per worker for 5 workers). Fixed costs (loan payment) are not considered in calculating variable costs.