Use the Following to Answer Question

question 172

Multiple Choice

Use the following to answer question:
-(Table: Workers and Art Output) Look at the table Workers and Art Output. Suppose you achieve your dream of opening an art studio specializing in selling mud statues. You pay $10 in fixed costs for equipment and $9 per day to each of your workers who make the mud statues. The industry is perfectly competitive, with a current market price of $1. How many statues should you produce?

• A) 25
• B) 35
• C) 43
• D) 48

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Definitions:

Wages and Salaries

Payments made to employees in exchange for their labor or services, categorized as either hourly (wages) or fixed annual amounts (salaries).

Cash and Cash Equivalents

Liquid assets that include currency, checks, and short-term investments that can be quickly converted to cash.

Net Income

Net income is the total profit remaining after all expenses, taxes, and costs have been subtracted from total revenues.

Equity

The value of an owner's interest in a property or business, calculated as the difference between the assets and liabilities.