In the Table Below,the Capital Stock Is Fixed at 40

question 33

Multiple Choice

In the table below,the capital stock is fixed at 40 units,the price of capital is $15 per unit,and the price of labor is $80 per unit. If the firm produces 180 units of output,what is total variable cost?

• A)$1,200
• B)$1,800
• C)$14,400
• D)$17,100
• E)none of the above

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Definitions:

Initial Investments

The initial capital outlay required to start a project, purchase an asset, or launch an investment, often considered in decision-making processes.

Working Capital

A financial metric representing the difference between a company's current assets and current liabilities, indicative of its operational liquidity.

Income Tax Expense

The amount of money a company owes in taxes based on its taxable income for a given fiscal period.

Straight-Line Depreciation

A strategy for apportioning the price of a concrete asset over its effective life in steady yearly increments.