Decent Donuts -Use the Data in the Table Above and Suppose That

question 101

Multiple Choice

Decent Donuts

-Use the data in the table above and suppose that labor is the only variable factor of production. If each worker is paid $42.00 per day, what is the average variable cost to Decent Donuts of producing 122 dozen donuts per day?

• A) $1.91
• B) $2.16
• C) $2.41
• D) $3.06

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Definitions:

Eurodollar Deposits

U.S. dollars deposited in banks outside the United States, often used in international transactions.