Vipsana's Gyros House sells gyros. The cost of ingredients (pita, meat, spices, etc.) to make a gyro is $2.00. Vipsana pays her employees $60 per day. She also incurs a fixed cost of $120 per day. What is Vipsana's total cost per day when she does not produce any gyros and does not hire any workers?

Question

Quizplus · Accepted Answer

The total cost per day when no gyros are produced and no workers are hired is the fixed cost of $120 per day. Fixed costs are incurred regardless of the level of production or staffing.

Vipsana's Gyros House Sells Gyros