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

Firms' costs, revenue and objectives — practice question

An entrepreneur purchases a workshop for $\$10000$ to produce picture frames. In the first year, he spent $\$40000$ on materials and hired two workers. He paid the workers for each frame made, with the total cost coming to $\$30000$. He also bought a vehicle for $\$10000$ to deliver the frames. Calculate his total variable costs.

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

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