A business incurs the following costs per unit: Labor 125/unit; Materials 45/unit and rent 250,000/month. If the firm produces 1,000,000 units a month, the total costs equal
a. 125,250,000
b. 170,250,000
c. 125,050,000
d. 170,050,000
QUESTION 2A business incurs the following costs per unit: Labor 125/unit; Materials 45/unit and rent 250,000/month. If the firm produces 1,000,000 units a month, the total fixed costs equal
a. 250,000
b. 50,000
c. 20,500
d. 30,000
QUESTION 3A business incurs the following costs per unit: Labor 125/unit; Materials 45/unit and rent 250,000/month. If the firm produces 1,000,000 units a month, the total variable costs equal
a. 125Million
b. 45Million
c. 1Million
d. 170Million
QUESTION 4Variable costs are
a. costs that vary with output
b. not important in decision making
c. costs that do not vary with output
d. equal to total costs
QUESTION 5Ethanol Mandates Congress has passed laws requiring that a certain percentage of retail gasoline be from ethanol produced from corn. How would this destroy wealth?
QUESTION 6Securities Taxes Congress has proposed a new tax on any transactions of securities traded on Wall Street. How would this destroy wealth?
Quick Reply
