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

Firms’ costs, revenue and objectives — practice question

An entrepreneur purchases a workshop for $10000 in order to produce picture frames. During the first year, he spent $40000 on materials and hired two workers. He paid the workers according to each frame made, and this came to a total of $30000. He also bought a vehicle for $10000 to deliver the frames. What did his total variable costs amount to?

  • A$40000
  • B$70000
  • C$80000
  • D$100000

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