Asked by Marina Castelluzzo on May 06, 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 total cost of producing 43 statues is:
A) $10.
B) $20.
C) $40.
D) $50.
Total Cost
The aggregate expenditure on production, covering both unchanging and variable costs.
Mud Statues
Sculptures made from mud, often created as part of traditional crafts or for ceremonial purposes.
Variable Cost
Costs that vary in direct proportion to changes in levels of production or output.
- Evaluate the comprehensive, variable, and marginal costs employing the available data.
Verified Answer
LD
Lillian De JesusMay 07, 2024
Final Answer :
D
Explanation :
From the table, we see that the production of 43 statues requires 5 workers.
The daily cost for the loan and workers is:
Loan cost = $10
Workers cost = $10/worker x 5 workers = $50
Total cost = Loan cost + Workers cost = $10 + $50 = $60
Therefore, the total cost of producing 43 statues is $60. The closest answer choice is D, $50.
The daily cost for the loan and workers is:
Loan cost = $10
Workers cost = $10/worker x 5 workers = $50
Total cost = Loan cost + Workers cost = $10 + $50 = $60
Therefore, the total cost of producing 43 statues is $60. The closest answer choice is D, $50.
Learning Objectives
- Evaluate the comprehensive, variable, and marginal costs employing the available data.
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