Assume It Takes 10 Units of Labor to Produce 4

question 270

Multiple Choice

Assume it takes 10 units of labor to produce 4 units of output. When the price of labor is $6 per unit and fixed costs equal $60, what is the total cost of those 4 units of output?

• A) $60
• B) $70
• C) $120
• D) $84

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Definitions:

Trade Barriers

Measures used by countries to restrict international trade and protect domestic industries, including tariffs, quotas, and subsidies.

Accounting Services

Professional services that include the maintenance, auditing, and reporting of financial statements and records for individuals or businesses.

Free Foreign Trade

The exchange of goods and services across international borders or territories without the imposition of restrictions such as tariffs, quotas, or other barriers.

Trade Deficit

A situation where a country's imports of goods and services exceed its exports, indicating more money leaving the economy than entering it.