Suppose Bev's Bags makes two kinds of handbags-large and small.Bev rents an industrial space where she keeps the fabric,the industrial sewing machine,her measuring board and cutting shears,extra needles,thread and buttons,and labels.If Bev were to produce no bags,which of the following is true regarding Bev's costs?
A) The variable cost of fabric would drop to zero.
B) The fixed cost of thread would stay the same.
C) The variable cost of cutting shears would drop to zero.
D) All of these are true.
Correct Answer:
Verified
Q43: Mika's Manicures leases a space in the
Q44: Explicit costs include:
A) out-of-pocket costs.
B) fixed costs.
C)
Q45: Mika withdraws $100,000 from her trust fund
Q46: Doug wants to start up his own
Q47: If a firm increases production,then its:
A) variable
Q49: Suppose Larry's Lariats produces lassos in a
Q50: If a sandwich shop produces zero sandwiches,which
Q51: Imagine Tom's annual salary as an assistant
Q52: If a firm decreases production,then its:
A) variable
Q53: Mike wants to open his own repair
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents