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3 college students are considering operating a tutoring business in economics. this business would require that they give up their current job at the student recreation centre, which pay $6000 per year. A fululy equipped facility can be leased at a cost of $8000 per year. Additional costs are $1000 a year for... 顯示更多 3 college students are considering operating a tutoring business in economics. this business would require that they give up their current job at the student recreation centre, which pay $6000 per year. A fululy equipped facility can be leased at a cost of $8000 per year. Additional costs are $1000 a year for insurance and $0.5 per person per hour for materials and supplies. Their services would be priced at $10 per hour per person. a. what are fixed cost? b. what are variable cost? c. what is the marginal cost? d. how many students would it take to break even?

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a. Within a year, facilities and insurance are fixed cost. b. Materials and supplies c. Materials and supplies d. For a year, (8000+1000)/(10 - 0.5) = 948 student-hour

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