Table 12-4
Charles's Math Tutoring

-Refer to Table 12-4.Suppose that Charles's math tutoring company has a fixed cost of $50 per month for his cell phone.Each worker costs Charles $60 per day.As output increases from 45 to 70 students,Charles's total cost curve
A) increases but gets flatter.
B) increases and gets steeper.
C) decreases and gets flatter.
D) decreases but gets steeper.

Question

Table 12-4
Charles's Math Tutoring
 
-Refer to Table 12-4.Suppose that Charles's math tutoring company has a fixed cost of $50 per month for his cell phone.Each worker costs Charles $60 per day.As output increases from 45 to 70 students,Charles's total cost curve
A) increases but gets flatter. 
B) increases and gets steeper. 
C) decreases and gets flatter. 
D) decreases but gets steeper.

Quizplus · Accepted Answer

Since each worker costs $60 per day and there is a fixed cost of $50 for Charles's cell phone, as the number of students increases, the variable cost of labor will increase as well. Therefore, the total cost curve will shift up and get steeper as output increases from 45 to 70 students.

Table 12-4 Charles's Math Tutoring