Author Question: Which of the following would be classified as a fixed cost for the local supermarket? A) The cost ... (Read 91 times)

sam.t96 · **on:** Jun 29, 2018

Which of the following would be classified as a fixed cost for the local supermarket?

A) The cost of the boxes of cereal sold in the store.
B) The salary and any overtime paid the store's manager.
C) The rent from the six-year lease for the building the store uses.
D) The Social Security tax the store pays the federal government on the workers' income.

Question 2

In the above figure, if the price is P1, the firm maximizes its profit by producing

A) nothing.
B) where MC equals ATC.
C) where MC equals P1.
D) where ATC equals P1.