Shannon Vale Is Considering the Start-Up of a Service Company

question 20

Multiple Choice

Shannon Vale is considering the start-up of a service company. She has compiled information on costs as follows: With the cost data provided, determine the fixed costs and variable cost per km.

• A) Fixed costs: $4425; Variable costs: $1.031
• B) Fixed costs: $5,186; Variable costs: $0.818
• C) Fixed costs: $6,200; Variable costs: $0.966
• D) Fixed costs: $5,726; Variable costs: $0.952
• E) Fixed costs: $7,752; Variable costs: $1.048

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Definitions:

GDP

Gross Domestic Product, a monetary measure of the market value of all final goods and services produced in a country during a specific period.

Automatic Stabilizer

Economic policies and programs, such as unemployment benefits, that automatically adjust to stabilize an economy's fluctuations without direct intervention by policymakers.

Welfare

Financial and social support programs provided by the government to assist individuals and families in need.

Transfer Payments

Money or benefits distributed by the government to individuals without requiring a direct exchange of goods or services, often aimed at providing social welfare.