Question

Table: Workers and Output No. of Workers Output

(Table: Workers and Output) Use Table: Workers and Output. After graduation, you achieve your dream of opening an art shop that specializes in selling mud statues. You pay $10 per day on a loan from your uncle, regardless of how much you produce. You also pay $10 per day to each of the workers who you hire to make the mud statues. The variable cost of producing 43 statues is:

$43.

$10.

$20.

$40.

Answer 1

Answer : The answer is option D.

Here only the payment of workers is the variable cost. To produce 43 statues 4 workers are required. The wage of per worker is $10. So, for 43 statues the variable cost = Wage rate * Number of workers = 10 * 4 = $40.

Therefore, option D is correct.