Use the Following to Answer Question

question 47

Multiple Choice

Use the following to answer question:
-(Figure: Short-Run Costs II) Use Figure: Short-Run Costs II.At 6 units of output,average variable cost is approximately:

• A)$100.
• B)$120.
• C)$200.
• D)$250.

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Definitions:

Credit Balance

A balance that appears on the right side of an account, indicating that a company owes money or has a liability.

Process Cost Accounting System

An accounting system used to track and allocate costs of production by process or department, commonly employed in manufacturing environments with continuous, homogeneous outputs.

Product Quantity

The total number of units of a product that are produced, available for sale, or sold at a given time.

Factory

A building or set of buildings where goods are manufactured or assembled chiefly by machine.