Use the Information Below to Answer the Following Questions

question 64

Multiple Choice

Use the information below to answer the following questions.
Jan runs a successful hairdressing salon in the CBD. The type of costs incurred in providing services to clients are:
i) Hairdressers' salaries
ii) Shampoo and Conditioner
(no individual records kept of usage)
iii) Colour and Perm Solutions
(individual records kept of usage per client)
iv) Electricity and Gas
v) Depreciation of equipment
-Refer to the information above. The indirect costs incurred in providing a haircut only to a client would be:

• A)all costs mentioned above.
• B)shampoo and conditioner, electricity and gas.
• C)electricity and gas and depreciation of equipment.
• D)shampoo and conditioner, electricity and gas, and depreciation of equipment.

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Definitions:

Profit-maximizing Level

The output level at which a firm maximizes its profits, determined by the point where marginal cost equals marginal revenue.

Total Revenue

The aggregate sum of funds a company acquires from selling products or offering services over a specified duration.

Inputs Prices

The cost or price of the raw materials, labor, and other resources that are used in the production process of goods or services.

Perfectly Competitive

A market structure characterized by a large number of small firms, homogenous products, perfect information, and no barriers to entry or exit, resulting in firms being price takers.