Question

Suppose that Nia's only variable cost is labor. Assuming daily fixed costs of $20 and a daily wage of $30 for all workers, what is Nia's total cost on a given day?

A. $50
B. $30
C. $20
D. $70

Answer 1

Nia's total cost on a given day is $50.

Step-by-step explanation:

To calculate Nia's total cost on a given day, we need to sum up the fixed costs and the variable costs. The fixed costs are $20 per day. As stated in the question, Nia's only variable cost is labor, with a daily wage of $30 for all workers. Therefore, the variable cost due to labor is $30.

To find the total cost, we simply add the fixed costs and the variable costs:

Total Cost = Fixed Costs + Variable Costs

Total Cost = $20 + $30 = $50

Therefore, Nia's total cost on a given day is $50 (Option A).