The Average Total Cost of Producing Cell Phones in a Factory

question 217

Multiple Choice

The average total cost of producing cell phones in a factory is $20 at the current output level of 100 units per week.If the fixed cost is $1,200 per week:

• A)average fixed cost is $20.
• B)total cost is $3,200.
• C)variable cost is $2,000.
• D)average variable cost is $8.

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Definitions:

Experimental Method

A research technique in which an investigator manipulates one or more factors (independent variables) to observe the effect on some behavior or mental process (the dependent variable).

Correlational Studies

Research methods that examine the relationship between two or more variables to determine if a change in one variable is associated with a change in another.

Cause-and-Effect

A relationship where one event (the cause) directly results in another event (the effect).

Dependent Variable

In an experimental setting, the dependent variable is the variable being tested and measured, changing in response to alterations in the independent variable.