Suppose Joe Surfer, a surfboard manufacturer produces 100 surfboards per month. Joe leases production space for $500 per month. He has recently taken out a loan to purchase new machinery and equipment. The monthly interest on the loan is $800. Joe's inputs into each surfboard are the labour of an expert surfboard maker, who he pays $6000 per month and various other inputs which cost $100 per surfboard. Calculate Joe's fixed, variable and total costs per month.

Question

Quizplus · Accepted Answer

The Answer of Suppose Joe Surfer, a surfboard manufacturer produces 100 surfboards per month. Joe leases production space for $500 per month. He has recently taken out a loan to purchase new machinery and equipment. The monthly interest on the loan is $800. Joe's inputs into each surfboard are the labour of an expert surfboard maker, who he pays $6000 per month and various other inputs which cost $100 per surfboard. Calculate Joe's fixed, variable and total costs per month.

Suppose Joe Surfer, a Surfboard Manufacturer Produces 100 Surfboards Per