Economics 2281 · O Level · Firms' costs, revenue and objectives

Firms' costs, revenue and objectives — practice question

A businessman purchases a workshop for $200000 in order to produce plastic boxes. During its first year of trading, he spends $70000 on materials, hires ten production workers who are paid according to output (piece rate) at a total cost of $80000, and buys two delivery vehicles for $10000 each. What is the total of his variable costs?

  • A$100000
  • B$150000
  • C$220000
  • D$370000

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