Use the Information Below to Answer the Following Questions

question 59

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 perm to a client would be:

• A)all costs mentioned above.
• B)shampoo and conditioner, electricity and gas, depreciation on equipment.
• C)shampoo and conditioner, electricity and gas, colour and perm solution.
• D)shampoo and conditioner, electricity and gas.

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Definitions:

Perfectly Elastic

A state of demand or supply in which the quantity demanded or supplied changes infinitely with any change in price.

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity of that good that suppliers are willing to produce and sell.

Efficient Output

The maximization of output using the least amount of inputs or resources.

Perfect Competitor

Refers to a theoretical market structure where numerous small firms compete against each other with no single company influencing the market price or supply of a product.