Asked by Anupama Balaji on May 07, 2024
Verified
(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 fixed cost of producing 25 statues is:
A) $10.
B) $20.
C) $25.
D) $35.
Fixed Cost
Expenses that do not change with the level of production or sales.
Mud Statues
Sculptures or figurines crafted from mud, often associated with folk art or traditional decorations.
Workers
Individuals engaged in any form of employment, contributing labor to produce goods or provide services.
- Determine the average fixed, variable, and overall costs from given data.
Verified Answer
TG
Teresa GiglioMay 11, 2024
Final Answer :
A
Explanation :
Fixed costs are costs that do not change with the level of output. In this scenario, the only fixed cost mentioned is the $10 per day loan from your uncle. The cost of hiring workers is a variable cost, not a fixed cost, because it changes with the number of workers hired.
Learning Objectives
- Determine the average fixed, variable, and overall costs from given data.