Economics 0455 · IGCSE · Firms’ costs, revenue and objectives

Firms’ costs, revenue and objectives — practice question

The table presents the information available to a company’s managers from one week of business activity: number of employees $=100$, average wage $=\$900$, value of output $=\$100\,000$, rent $=\$10\,000$, raw materials $=\$20\,000$. If there are no other costs, what is the amount of the fixed costs?

  • A$\$300$
  • B$\$10\,000$
  • C$\$20\,000$
  • D$\$30\,000$

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