Suppose you are given the following table (note: labor is the only variable input and all workers are paid equally): Labor Quantity Fixed Costs Variable Costs Total Costs 0 units $10 10 units 18 units 20 units 0 1 2 3 $50 What is the value of this company's fixed costs? O a. $0 O b. $10 O c. $20

Suppose you are given the following table (note: labor is the only variable input and all workers are paid equally): Labor Quantity Fixed Costs Variable Costs Total Costs 0 units $10 10 units 18 units 20 units 0 1 2 3 $50 What is the value of this company's fixed costs? O a. $0 O b. $10 O c. $20

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter7: Production And Cost In The Firm

Section: Chapter Questions

Problem 3.8P

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Question

Suppose you are given the following table (note: labor is the only variable input and all
workers are paid equally):
Labor Quantity Fixed Costs Variable Costs Total Costs
0 units
$10
0
1
2
3
10 units
18 units
20 units
$50
What is the value of this company's fixed costs?
O a. $0
O b. $10
O C. $20
O d. $30
O e. $50

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