Use the following to answer questions:
-(Table: Workers and Output) Look at the table Workers and Output. After graduation you achieve your dream of opening an art shop that specializes in selling mud statues. You pay $10 per day on a loan from your uncle, and regardless of how much you produce, you pay $10 per day to each of the workers who make the mud statues. The fixed cost of producing 25 statues is:
A) $10.
B) $20.
C) $25.
D) $35.

Question

Use the following to answer questions: 
-(Table: Workers and Output) Look at the table Workers and Output. After graduation you achieve your dream of opening an art shop that specializes in selling mud statues. You pay $10 per day on a loan from your uncle, and regardless of how much you produce, you pay $10 per day to each of the workers who make the mud statues. The fixed cost of producing 25 statues is:
A) $10. 
B) $20. 
C) $25. 
D) $35.

Quizplus · Accepted Answer

The fixed cost is the cost that does not change with the level of output, which in this case is the $10 loan payment.

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