Megan Is a Landscaper

question 203

Multiple Choice

Megan is a landscaper. Which of the following are included in her human capital?

• A)her knowledge of landscaping learned in college and her landscaping equipment
• B)her knowledge of landscaping learned in college, but not her landscaping equipment
• C)her landscaping equipment, but not her knowledge of landscaping learned in college
• D)neither her knowledge of landscaping learned in college nor her landscaping equipment

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Definitions:

Average Fixed Cost

The cost incurred for fixed inputs (rent, salaries) divided by the quantity of output produced, which decreases as production increases.

Variable Cost

Costs that vary directly with the level of production or output, such as materials and labor, in contrast to fixed costs.

Total Cost

The complete sum of all expenses incurred by a business or individual in producing a good or service.

Fixed Cost

Costs that do not vary with the level of production or sales, such as rent, salaries, or insurance premiums.