Cindy Operates Birds-R-Us,a Small Store Manufacturing and Selling 100 Bird

question 207

Multiple Choice

Cindy operates Birds-R-Us,a small store manufacturing and selling 100 bird feeders per month.Cindy's monthly total fixed costs are $500,and her monthly total variable costs are $2,500.If for some reason Cindy's fixed cost fell to $400,then her _____ costs would _____.

• A)average fixed;increase
• B)average total;decrease
• C)marginal;decrease
• D)average variable;decrease

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Definitions:

Premium Bonds

Government or corporate bonds that are sold at a price above their face value due to their high credit quality or favorable interest yield.

Discount Bonds

Bonds sold for less than their face value, offering investors the difference as profit upon maturity.

BBB Credit Rating

This is a credit score indicating that the borrower has a good credit standing, typically associated with medium-grade investment securities with a moderate risk of default.