(Table: Bonnie's Production Function for Good Z) Look at the table Bonnie's Production Function for good Z.Suppose Bonnie spends $300 per month to rent the building, $100 per month to pay for insurance for her business, and $100 per worker per month for every worker she hires.Given this information, Bonnie's fixed costs equal:
A)$400.
B)$300.
C)$500.
D)$100.

Question

Quizplus · Accepted Answer

Fixed costs are expenses that do not change with the level of output. In this case, Bonnie's fixed costs include the rent for the building ($300) and the insurance ($100), totaling $400.

(Table: Bonnie's Production Function for Good Z) Look at the Table