Unformatted text preview: The Cost of Production in the Short Run II Graded Assignment | Back: to Assignment Due Sunday 11.21.10: at 11:45 PM 1. Cost of Bewa's baker's:r Ben-fa decides to open a bakery since it has aiwavs been her dream to own a business. To do this. she ieaues her
current job at Momma's Bakery, which pays a saianr of $130 per day. To start her business, Serve needs store space, an oven. and raw ingredients. She rents a store with an oven for
one 1“rear. The owner of the store requires Berva to par $30 pEr day. If she so decides. BEWE can sublet the lease
to HHUH'IEF business and stop paying rent. Hers-a aiso purchases $1 of raw ingredien’s for ever; baked good she
ma'rQEs. a. What is Bewa’s ﬁxed cost? $50 per da1,.uI a
b. What Is Bewa's variabie cost? $1 per baked good a.
c. What Is Bewa’s Oppﬂl‘tunlt’f cost? $130 per day a ...
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- Winter '09