Use the following to answer questions:
-(Table: Workers and Output) Look at the table Workers and Output. After graduation you achieve your dream of opening an art shop that specializes in selling mud statues. You pay $10 per day on a loan from your uncle, and regardless of how much you produce, you pay $10 per day to each of the workers who make the mud statues. The variable cost of producing 43 statues is:
A) $10.
B) $20.
C) $40.
D) $43.

Question

Use the following to answer questions: 
-(Table: Workers and Output) Look at the table Workers and Output. After graduation you achieve your dream of opening an art shop that specializes in selling mud statues. You pay $10 per day on a loan from your uncle, and regardless of how much you produce, you pay $10 per day to each of the workers who make the mud statues. The variable cost of producing 43 statues is:
A) $10. 
B) $20. 
C) $40. 
D) $43.

Quizplus · Accepted Answer

The variable cost is the cost that changes with the level of output. Since each worker is paid $10 per day and the cost is dependent on the number of workers needed to produce 43 statues, the variable cost is the total wages paid to the workers.

Use the Following to Answer Questions