Dizzy Amusement Park Is Open from 8:00 Am Till Midnight

question 328

Multiple Choice

Dizzy Amusement Park is open from 8:00 am till midnight every day of the year. Dizzy charges its patrons a daily entrance fee of $30 per person which gives them unlimited access to all of the park's 35 rides.Dizzy employees a certified operator for each of its 35 rides. Each operator is paid $20 per hour. The cost of the certified operators would best be described as a:

• A) fixed cost
• B) mixed cost
• C) step-variable cost
• D) true variable cost

---

Definitions:

Organizational

Pertaining to the structure and function of an organization, including its processes, policies, and personnel management.

Contractual Forms

denotes the various arrangements and agreements under which businesses and individuals engage in transactions, outlining the terms and conditions of their exchanges.

Average Variable Cost

The total variable cost divided by the quantity of output produced, representing the variable cost per unit of output.

Average Fixed Cost

The fixed costs of production divided by the quantity of output produced, which decreases as production increases.