Author Question: A firm produces 500 units per week. It hires 20 full-time workers (40 hours/week) at an hourly wage ... (Read 203 times)

urbanoutfitters · **on:** Jul 1, 2018

A firm produces 500 units per week. It hires 20 full-time workers (40 hours/week) at an hourly wage of 15 . Raw materials are ordered weekly and they costs 10 for every unit produced. The weekly cost of the rent payment for the factory is 2,250 . How do the overall costs breakdown?
a. total variable cost is 17,000 . total fixed cost is 2,250; total cost is 19,250
b. total variable cost is 12,000 . total fixed cost is 7,250; total cost is 19,250
c. total variable cost is 5,000 . total fixed cost is 14,250; total cost is 19.250
d. total variable cost is 5,000 . total fixed cost is 2,250; total cost is 7,250

Question 2

Many spouses complain that their partners tend to let themselves go after getting married. This is an example of
a. Moral hazard
b. Adverse selection
c. Terrible husbands
d. None of the above