Fixed cost and vairiable cost
Course:- Microeconomics
Reference No.:- EM1326

Assignment Help
Assignment Help >> Microeconomics

Questions: : Which of the following are likely to be fixed costs and which variable costs for a chocolate factory over the course of a month?  Explain your choice.

(a)           The cost of cocoa               

(b)           Business rates (local taxes).              

(c)           An advertising campaign for a new chocolate bar. ............................................

(d)           The cost of electricity (paid quarterly) for running the mixing machines .................

(e)           Overtime pay      

(f)            The basic minimum wage agreed with the union (workers must be given at least one month's notice if they are to be laid off).               

(g)           Wear and tear on wrapping machines.           

(h)           Depreciation of machines due simply to their age.      

(i)            Interest on a mortgage for the factory: the rate of interest rises over the course of the month.           


Put your comment

Ask Question & Get Answers from Experts
Browse some more (Microeconomics) Materials
Explain the equimarginal principle. Describe and explain a monopolist’s output decision. Explain why a price-fixing cartel is difficult to maintain. Put in plain words the con
Consider a zero-coupon corporate bond that promises to pay a return of 12% next period. Suppose that there is a 20% chance that the issuing company will default on the bond pa
Draw the graph containing the ATC, AVC, MC, MR for a monopolistically competitive firm operating in the short run earning a profit. Be sure to label everything including th
Assume that you are responsible for selecting a new DBMS product for a group of users in your organization. To undertake this exercise, you must first establish a set of req
Explain the three types of goods: search goods, experience goods and credence goods. What type of advertising would firm’s likely use for each type of good and why? Explain ho
Suppose that the "Small but Significant and Nontransitory Increase in Price" threshold is 5%. Making use of critical elasticity of demand analysis, do the existing producers
The equilibrium price for physiotherapy visits is $30 and the quantity utilized is 150 visits as a result of the demand and supply conditions in this diagram.
Oversize Transport Inc. supplies custom delivery service for very large construction equipment in the southeast region of United States. The most common lead of the specialty