Darren Runs a Barbershop with Average Fixed Costs of $60

question 45

Multiple Choice

Darren runs a barbershop with average fixed costs of $60 per day and a total output of 50 haircuts per day. Darren shuts down every year during the last week of July and the first week of August. What is his annual fixed cost if he is open six days per week?

• A) $18,000
• B) $3,000
• C) $60
• D) The answer cannot be determined with the information available.

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Definitions:

Consumers

Individuals or entities that purchase goods or services for personal use and not for manufacturing or resale purposes.

Consumerism

The societal and economic order that encourages the acquisition of goods and services in ever-increasing amounts.

Government Agencies

Organizations established by a government to perform specific functions, such as regulation or enforcement of laws and policies.

Environment

The sum of all external conditions and influences affecting the life, development, and survival of organisms or a specific entity.