Use the Following to Answer Questions $\text {Table: Bonnie's Production Function for Good Z}$

question 102

Multiple Choice

Use the following to answer questions : $\text {Table: Bonnie's Production Function for Good Z}$
$\text {The table describes Bonnie's production function for }$
$\text {Good Z. Assume labour is the only variable input that}$
$\text { Bonnie uses to produce Good Z.}$

$\begin{array}{lr}\hline \text {Quantity of}&\text {Quantity of}\\\text {Labour Hired}&\text {Good Z Produced}\\\text {(workers) }&\text {(per time period) }\\\hline 0 & 0 \\ 1 & 75 \\ 2 & 150 \\ 3 & 250 \\ 4 & 325 \\ 5 & 375\end{array}$

-(Table: Bonnie's Production Function for Good Z) Use Table: Bonnie's Production Function for Good Z.The costs that vary with Bonnie's level of production are her:

• A) fixed costs.
• B) variable costs.
• C) rent and insurance.
• D) costs that remain the same regardless of what she produces.