Figure: Benin in the Figure, Benin Has 32 Workers

question 106

Multiple Choice

Figure: Benin In the figure, Benin has 32 workers, and the price per ton of cotton and ton of rice is $2,500 and $1,200, respectively. The average wage with no trade is ______, and the average wage with trade is ________.

• A) $850; $1,081.25
• B) $768.75; $1,000
• C) $1,000; $850
• D) $1,000; $1,081.25

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Definitions:

Pretax Income

The amount of income earned by a business before any taxes have been deducted.

Fixed Costs

Fixed costs are business expenses that do not change with the level of goods or services produced by the business, such as rent, salaries, and insurance.

Variable Costs

Costs that vary directly with the level of production or sales volume, such as materials and labor directly involved in manufacturing a product.

Units

A measure of quantity used to express the amount of a product, service, or resource, often used in production and inventory contexts.