Suppose a Publisher Faces the Following Costs of Producing 10,000

question 92

Multiple Choice

Suppose a publisher faces the following costs of producing 10,000 newspapers each month: $5,500 cost of labor; $2,200 monthly mortgage payment; $250 cost of electricity to run the printing presses; $800 for ink and paper; and $200 in city property taxes (based on the value of the building and land) . Its total variable costs are:

• A) $8,950.
• B) $8,750.
• C) $6,550.
• D) $6,300.
• E) $5,500.

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