A certain politician has a brilliant idea. he will increase his popularity and assure reelection by giving away cash to everybod
y in the country. he will give $1 to a certain u.s. citizen, $2 to another, $3 to another, and so on until he has given away $297,624,985 to the 297,624,985th and last citizen of the united states.
<span>Put all of these numbers in a line...obviously, don't put ALL of them, but enough so you can see what you're doing.
1 + 2 + 3 + ... + 297,624,985
Now put all these numbers BACKWARDS underneath that.
1 + 2 + 3 + ... + 297,624,985
297,624,985 + 297,624,984 + 297,624,983 + ... + 1
Now add the first series to the second, and you'll see that they add up to:
297,624,986 + 297,624,986 + 297,624,986 + ...297,624,986
Since there were 297,624,985 terms, the total sum here is
297,624,986 * 297,624,985
But since you added it twice, you divide it by two:
148,812,493 * 297,624,985
This is 44,290,315,996,937,605, so...yes, it is MUCH larger.</span>
C. None of these would be considered a fixed cost.
Explanation:
Fixed cost is a cost that do not vary with any level of output. It is a cost that does not change irrespective of an increase or decrease in a company's production output.
Example of fixed cost are interest payment on loan, payment of rent, depreciation and cost of land acquisition. All these costs remain the same no matter how high or low production output is.
As in the case above,
•The cost of rope would form part of the total cost (which is sum of all the cost expended by a company in certain production output) and NOT a fixed cost because the rope is used to prepare the final packaged product.
•The packaging material would also form part of the total cost. The cost expended on this material is what makes it a total cost as it forms part of the final production output.
•Employee wages would be regarded as variable cost(cost that vary with the level of output) because it is a production company, hence employee's wages will be dependent on the number of products they are able to produce.
