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A Firm Produces 1000 Units Per Week

Question 14

Multiple Choice

A firm produces 1000 units per week.It hires 10 full-time workers (40 hours/week each) at an hourly wage of $20.Raw materials costs $5 per unit. Rent for the factory is $1,500 per week.What are the overall costs for the week?


A) ​total variable cost is $5,000;total fixed cost is $1,500;total cost is $6,500
B) total variable cost is $5,000;total fixed cost is $9,500;total cost is $14,500
C) total variable cost is $13,000;total fixed cost is $1,500;total cost is $14,500
D) ​total variable cost is $13,000;total fixed cost is $9,500;total cost is $22,500

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