Exhibit 7-14 Total Cost Curve

question 60

Multiple Choice

Exhibit 7-14 Total Cost Curve
-In Exhibit 7-14, what is the average variable cost when producing 10 units of output?

• A) $0
• B) $2.00
• C) $4.30
• D) $4.60
• E) cannot be determined from the total cost curve

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Definitions:

Stock Split

A corporate action where a company divides its existing shares into multiple shares to boost the liquidity of the shares, though the overall value of one's holdings remains the same.

Market Value

The existing rate for buying or selling a commodity or service in a trading environment.

Shares Outstanding

The total number of shares of a corporation that have been issued and are currently owned by shareholders.

Reverse Stock Splits

Reverse stock splits consolidate the number of existing shares of a company into fewer, proportionally more valuable shares.