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Use the Following to Answer Question

question 259

Multiple Choice

Use the following to answer question: Use the following to answer question: -(Table: Cost Data) Use Table: Cost Data.The average fixed cost of producing 5 purses is: A) $0. B) $50. C) $25. D) $10.
-(Table: Cost Data) Use Table: Cost Data.The average fixed cost of producing 5 purses is:

Understand the significance of franchises in the business world and the relationship between franchisors and franchisees.
Realize the importance of a business plan's elements in securing financing.
Acknowledge the advantages and disadvantages of home-based businesses.
Grasp the criteria for small-business designation and related benefits.

Definitions:

Diseconomies of Scale

The condition in which a firm’s costs per unit of output increase as the firm increases in size or scale of operation.

Economies of Scale

Cost advantages that enterprises obtain due to their scale of operation, typically characterized by a reduction in average cost per unit when production is increased.

Externalities

Costs or benefits that result from an economic activity and affect third parties who did not choose to incur that cost or benefit.

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