Table 13-1
Alyson's Pet Sitting Service

-Refer to Table 13-1.Suppose that Alyson's pet sitting service has a fixed cost of $50 per month for her cell phone.Each worker costs Alyson $60 per day.What is the shape of Alyson's total cost curve as output increases from 45 to 70?

Question

Table 13-1
Alyson's Pet Sitting Service
 
-Refer to Table 13-1.Suppose that Alyson's pet sitting service has a fixed cost of $50 per month for her cell phone.Each worker costs Alyson $60 per day.What is the shape of Alyson's total cost curve as output increases from 45 to 70?

Quizplus · Accepted Answer

The fixed cost of $50 per month remains constant as output increases. The variable cost, which is the cost of each worker, will increase as output increases. This will cause the total cost curve to increase and become steeper. Therefore, option B is the correct answer.

Table 13-1 Alyson's Pet Sitting Service