Suppose Larry's Lariats produces lassos in a factory, and uses nine feet of rope to make each lasso. The rope is put into a machine that automatically cuts it to the right length, then seals the ends to prevent fraying. The rope is then hand tied, dipped, and wound before being placed in a packaging machine to prepare it for retail sale. Which of the following would be considered a variable cost for this company? Question 1 options: a The cost of the factory b Employee wages c The rope-cutting machine d All of these expenses would be included in variable costs.
Suppose Larry's Lariats produces lassos in a factory, and uses nine feet of rope to make each lasso. The rope is put into a machine that automatically cuts it to the right length, then seals the ends to prevent fraying. The rope is then hand tied, dipped, and wound before being placed in a packaging machine to prepare it for retail sale. Which of the following would be considered a variable cost for this company? Question 1 options: a The cost of the factory b Employee wages c The rope-cutting machine d All of these expenses would be included in variable costs.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Suppose Larry's Lariats produces lassos in a factory, and uses nine feet of rope to make each lasso. The rope is put into a machine that automatically cuts it to the right length, then seals the ends to prevent fraying. The rope is then hand tied, dipped, and wound before being placed in a packaging machine to prepare it for retail sale. Which of the following would be considered a variable cost for this company?
Question 1 options:
a
|
The cost of the factory
|
b
|
Employee wages
|
c
|
The rope-cutting machine
|
d
|
All of these expenses would be included in variable costs.
|
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