(Table: Workers and Art Output)Use Table: Workers and Art Output

question 16

Multiple Choice

(Table: Workers and Art Output) Use Table: Workers and Art Output.Suppose that you achieve your dream of opening an art studio specializing in selling mud statues.You pay $10 in fixed costs for equipment and $9 per day to each of your workers who make the mud statues.The industry is perfectly competitive,with a current market price of $1.How many statues should you produce?

• A)25
• B)35
• C)43

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Definitions:

Fixed Asset Turnover Ratio

A financial metric used to evaluate how effectively a company uses its fixed assets to generate sales.

Operating Income

The profit realized from a business's core operations, calculated before interest and taxes.

Average Fixed Assets

The mean value of a company's fixed assets, like plant and equipment, calculated over a specific period of time.

Double-Declining Balance Method

A method of accelerated depreciation calculating an asset's loss of value at double the rate of the straight-line depreciation method.