-Cindy's Sweaters' production function is shown in the above table. Cindy rents two knitting machines for $30 a day each and hires workers at a wage rate of $40 a day. If Cindy produces 18 sweaters per day, what is her total cost?
A) $120
B) $140
C) $180
D) $60

Question

-Cindy's Sweaters' production function is shown in the above table. Cindy rents two knitting machines for $30 a day each and hires workers at a wage rate of $40 a day. If Cindy produces 18 sweaters per day, what is her total cost?
A) $120 
B) $140 
C) $180 
D) $60

Quizplus · Accepted Answer

Cindy's total cost includes the cost of renting machines and hiring workers. Renting two machines costs $60 ($30 each), and if 18 sweaters require 3 workers (based on the production function), the labor cost is $120 (3 workers x $40 each). Thus, the total cost is $180.

-Cindy's Sweaters' Production Function Is Shown in the Above Table