A Piano Manufacture Has a Daily Fixed Cost of $1,300

question 96

Multiple Choice

A piano manufacture has a daily fixed cost of $1,300 and a marginal cost of $1,600 per piano. On a given day, what is the cost of manufacturing 3 pianos ?

• A) $3,500
• B) $8,700
• C) $6,100
• D) $5,500

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Definitions:

Libertarian

A political and philosophical stance emphasizing individual freedom and voluntary association with minimal state intervention.

Right

A claim or entitlement justified by law, custom, or morality.

Duty

What one ought to do, whether by virtue of his or her place or position in society (in Plato or Aristotle, for example) or by virtue of rational moral principles (as in Kant).

Obligation

A duty or commitment that one is bound to by law, promise, moral principles, or social custom.