Asked by Brayan Checo Rosario on Jul 28, 2024
Verified
Refer to Table 13-7. What is the value of A?
A) $25
B) $50
C) $100
D) $200
Fixed Cost
Expenses that do not change with changes in the volume of production or sales, such as rent, salaries, and insurance.
Variable Cost
A variable cost changes in direct proportion to the level of production or activity in a business, such as materials and labor.
Marginal Cost
The additional expense incurred from generating one more unit of a product or service.
- Identify the effects of labor and capital inputs on production costs.
- Derive the mean values of fixed, variable, and overall costs from given data.
Verified Answer
RR
Rylee RodriguezAug 03, 2024
Final Answer :
B
Explanation :
Fixed costs do not change with the level of output, so the value of A, representing fixed costs at an output of 1 ride, remains the same as when output is 0 rides, which is $50.
Learning Objectives
- Identify the effects of labor and capital inputs on production costs.
- Derive the mean values of fixed, variable, and overall costs from given data.