Patty runs a small organic peanut butter company with five employees and local sales of $100,000 per year. She estimates that the shape of her total variable cost curve largely reflects her costs of

Question

Quizplus · Accepted Answer

Labor is a variable cost that increases as production increases. In this case, as Patty produces more peanut butter, she will need to hire more employees to meet the demand, which will increase her labor costs.

Patty Runs a Small Organic Peanut Butter Company with Five