Table 3 shows the short-run production costs for a car wash: [table]
Costs | Cost per month ($) Land lease | 4,000 Workers’ wages | 2,600 Car wash machines | 3,000 Water | 1,500 Cleaning chemicals | 900
[/table] In the short run, calculate the car wash's fixed costs in Table 3.

Question

BlackTom AI · Accepted Answer

Fixed costs are costs that do not change with the level of output in the short run — typical examples are leases and capital equipment costs. Variable costs change with production (e.g., wages for hourly workers, water, cleaning chemicals).

1) Relevant concepts
- Fixed costs (FC): costs of inputs that are fixed in the short run (here: land lease and car wash machines).
- Variable costs (VC): costs that vary with output (workers’ wages, water, cleaning chemicals).

2) Step‑by‑step reasoning
- Identify each item as fixed or variable:
  - Land lease = $4,000 → fixed (lease does not vary with number of cars).
  - Car wash machines = $3,000 → fixed (capital equipment cost fixed in short run).
  - Workers’ wages = $2,600 → variable (labor varies with hours/throughput).
  - Water = $1,500 → variable (used per wash).
  - Cleaning chemicals = $900 → variable (used per wash).
- Sum only the fixed items to get total short‑run fixed costs.

3) Calculations (intermediate steps)
- Fixed cost total = Land lease + Car wash machines
- Fixed cost total = $4,000 + $3,000
- Fixed cost total = $7,000

4) Why this answer is correct
Because fixed costs in the short run include costs of inputs that cannot be varied (the lease and the capital machines). Workers’ wages, water, and chemicals are directly tied to production and so are variable — they are not included in fixed costs. Adding only the fixed items yields $7,000.

5) Why the other options are incorrect
- (a) $12,000 = sum of all costs (4000 + 2600 + 3000 + 1500 + 900). That is total cost, not fixed cost.
- (c) $8,500 = 4,000 + 3,000 + 1,500 (land + machines + water) — this incorrectly treats water (a variable input) as fixed.
- (d) $10,100 is not the sum of the fixed inputs and does not match any correct fixed‑cost combination from the table.

Conclusion: The car wash’s short‑run fixed costs are $7,000, which matches answer b.

Table 3 shows the short-run production costs for a car wash: [table] Costs | Cost per month ($) Land lease | 4,000 Workers’ wages | 2,600 Car wash machines | 3,000 Water | 1,500 Cleaning chemicals | 900 [/table] In the short run, calculate the car wash's fixed costs in Table 3.单项选择题

类似问题

Table 3 shows the short-run production costs for a car wash: [table] Costs | Cost per month ($) Land lease | 4,000 Workers’ wages | 2,600 Car wash machines | 3,000 Water | 1,500 Cleaning chemicals | 900 [/table] In the short run, calculate the car wash's fixed costs in Table 3.

Table 3 shows the short-run production costs for a car wash: [table] Costs | Cost per month ($) Land lease | 4,000 Workers’ wages | 2,600 Car wash machines | 3,000 Water | 1,500 Cleaning chemicals | 900 [/table] In the short run, calculate the car wash's fixed costs in Table 3.

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