Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Amy spends $5,000 on remodeling a storefront that she then opens as a take-out deli. Business has not been very successful, and she needs an

Amy spends $5,000 on remodeling a storefront that she then opens as a take-out deli. Business has not been very successful, and she needs an additional $1,000 to keep the deli open. Which of the following is true?

A) The $5,000 Amy spent on remodeling represents a part of the total variable cost of her business.

B) The $5,000 Amy spent is a fixed cost of her business.

C) The $1,000 represents her marginal costs of production.

D) The $1,000 Amy needs to keep the deli open represents her total fixed costs.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Macroeconomics

Authors: Stephen d. Williamson

5th Canadian edition

133847144, 9780134604794 , 978-0133847147

More Books

Students also viewed these Economics questions